Repo Locking Up Again As Market Tries To Force Fed's "Reserve Management Purchases"

Just weeks after this website first warned about the rapid deterioration in the repo market one month ago, and correctly predicted the premature end of QT, which was scrapped 2 months ahead of schedule at the end of October as the Fed scrambled to thaw the lock up in funding markets, there were tangible signs of stabilization in the all-important SOFR rate, which reversed its month-end spike, dropping almost back to flat (or no spread with IOR) as the market turned its attention to the flood of cash from the Treasury General Account which should hit either today or tomorrow now that the government has reopened.