Cryptocurrency: Fed Plays $225B in Interbank Repo
Investors and cryptos watching random charts this week... https://www.zerohedge.com/markets/fed-has-lost-control-rates-again https://pbs.twimg.com/media/EE1gNvNWwAAXjXZ.jpg https://www.newyorkfed.org/markets https://www.newyorkfed.org/markets/domestic-market-operations/monetary-polic... https://apps.newyorkfed.org/markets/autorates/tomo-results-display?SHOWMORE=TRUE&startDate=01/01/2000&enddate=01/01/2000 https://twitter.com/biancoresearch/status/1173934708863983617 https://www.ft.com/content/345da16e-d967-11e9-8f9b-77216ebe1f17 https://archive.is/PbCtz One of the most important sources of financial market lubrication came under severe strain this week, raising concerns that the Federal Reserve’s attempt to unwind post-financial crisis intervention may have gone too far. Repurchase agreements are the grease that keeps the financial system’s wheels spinning, allowing different market participants to borrow and lend to each other to cover short-term cash needs. On Tuesday, the wheels stopped turning. The so-called repo rate soared to a high of 10 per cent, when it typically trades in line with the Federal Reserve’s target interest rate of between 2 per cent and 2.25 per cent. The New York branch of the Fed had to step in and inject tens of billions of cash into the system in an attempt to restore order, doubling down on Wednesday with a second short-term injection.
https://www.reuters.com/article/denmark-rates-jyske-bank/update-1-denmarks-j... Jyske Bank, Denmark’s second-largest bank, said it would introduce a negative interest rate of 0.75% for all corporate deposits and for private clients depositing more than 750,000 Danish crowns ($111,100) from Dec 1. A month ago, it said clients depositing more than 7.5 million crowns would be charged negative interest rates of 0.6%. "we have to pass on part of this bill to our customers" Switzerland’s UBS has said it will impose a negative rate of 0.75% on clients who deposit more than 2 million Swiss francs.
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