Premium"At The Cusp": The Next Repo Crisis Is Already On The 2027 Calendar, And Goldman Just Published The Date
For most of 2026, monetary plumbing was the one corner of the market nobody had to think about (more than offset by the Iran war and the AI bubble, which is what everyone had to think about every day). Goldman thinks that ends next year.
The timing is, well, interesting. This morning Fed Governor Waller floated a 50bps hike hours before October CPI printed hotter than expected, a December hike is now fully priced, and the 2Y jumped to 4.61% before the number even hit. And yet, in the very same month - as in November - the Fed is expected to quietly start buying T-bills again. Raising the price of money with one hand, adding to its quantity with the other: only a central bank could call that a framework.