Former NY Fed Repo Guru: Powell Will Announce $45 Billion In Bill Purchases On Wednesday

The last time we shared the thoughts of former NY Fed plumbing guru, and current BofA rates strategist - Mark Cabana - was about two months ago, when he validated our prior assessment that the ongoing tensions in the repo market would force the Fed to end its QT early (or at least earlier than the previous consensus call of "early 2026") doing so at the October FOMC. Specifically, in late-October when both SOFR and Tri-party GC rates were suddenly spiking every day, Cabana said that “money markets at current or higher levels should signal to the Fed that reserves are no longer ‘abundant',” adding that elevated repo rates and funding stress suggest the system is approaching reserve scarcity (something which we had previously warned about).