[beezle]

My understanding is that Treasury took in an additional 80+ in cash against their stated goal of having 350B cash on hand (by quarter end I think). Obviously this is a very large draw of liquidity out of the system and is likely the single biggest reason for the squeeze.

Not quite 2/3 of collateral at the Fed operations has been treasuries the rest mortgage paper with a tiny amount of agencies.

The financial system/world runs on repo and it is troubling this is happening at all. My gut is Mnuchkin knew this would happen and is trying to force the Fed into backdoor easing through another round of QE before gradually releasing the cash back into the system by slightly lower than expected issuance of new debt.