Daily Reverse Repo Exceeds One Trillion - Highest in history
(media.greatawakening.win)
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I've been continually surprised the past 6 months that this doesn't attract more awareness and debate. I've seen probably a dozen different theories as to why this might be happening, each with its own merits but none fully compelling.
The theory I think most likely is that both the FED and the banks are squaring their books when they're "temporarily" holding the treasuries to generate the appearance that each are holding the right balance of bonds versus cash.
In short, re-hypothecation.
But I'm open to other theories as I'm not fully sold on this one. Why to you think it's happening?