So I dug into what the repo market is. And just to keep it super, super simple, it’s basically a pawn shop for banks. So imagine a pawn shop, you’re short on cash, and you’re like, Okay, what do I have, I got a watch, and you go down to the pawn shop, and you basically sell it to the pawn shop operator, but you have the ability to redeem it in a certain period of time and they charge you interest for the use of the money but presumably, whatever you are Hawking your asset for is important enough that the premium you have to pay to get access to that is there and of course, the the rate that you pay is, you know, kind of based on the risk.
So anyway, so banks are showing up in the repo market, and they’re bringing in their treasuries and they’re Hawking them they don’t want to sell their treasuries or they don’t want to be divested of who have the right to get them back it basically saying the banking system is low on cash that’s what activity in the repo market is and just like maybe you’re not proud to tell all your friends Hey, I had to Hawk my watch right the banking system they’re not like proud that they had to go Hawk their treasuries to raise cash. It’s an indication of dollar shortage in the system and the Fed accommodated that by printing a lot of dollars.