November 12, 2019
Interest rates latest publications
A 50bp rate cut would mark the beginning of a long overdue easing cycle.
Repo Rates: Slight increase in average daily intervention to $86bn as Fed conducts small operation exercises on its desk to test its operational readiness. Fed Balance Sheet: Total assets reach $4.08tn, the highest amount since January 2019.
Repo Rates: Average daily intervention holds steady at $84bn given Fed’s daily commitment to $120bn through October and no major shocks.
For the third time this year, the Fed lowered the target range of federal funds rate 25bp to 1.5-1.75% without significant changes to their outlook on the labor market or inflation.
Repo Rates: Rates stabilize as average daily intervention inches up to $84bn during the week. Fed recalibrates intervention: daily up to $120bn from $75bn and term up to $45bn from $35bn.
Repo Rates: Rates trended higher but pressures receded after increased intervention. Fed Open Market Operations: Average daily intervention jumped to $81bn during the week; Repo operations will continue at least through January.
Repo Market: No major spikes in rates. Average daily intervention since 9/17 jumps to $65bn; Fed commits to overnight repo operations at least through January 2020; Several FOMC members suggest introducing standing repo facility.
Repo Rates: Rates continue to stabilize. Fed Open Market Operations: Average daily intervention softened to $47bn this week from $86bn prior. Fed Balance Sheet: Total assets up $185bn since 8/28; Reserves up $101bn since start of turmoil.