All Hell Breaks Loose In Repo Markets... And Why A Historic Meltup Could Follow

Back on October 15, when looking at the sudden and dramatic deterioration in funding markets, we wrote "On The Verge Of A Funding Crisis: Fed's Emergency Liquidity Facility Unexpectedly Soars Most Since COVID" in which we explained why, well before it became a consensus view (as the banks all "agreed" one week later), the Fed should not only immediately suspend its Quantitative Tightening (which it did last week) but also restart purchases of securities (as Bank of America's resident repo guru Mark Cabana echoed a week later).

Cabana: "we see room for Fed to not only end QT in October but restart balance sheet growth" https://t.co/76BmjxRXoE

— zerohedge (@zerohedge) October 29, 2025