Top JPM Trader: "Repo Stress Has Been Main Reason For The Market Reversal... And What Happens Next"

Two weeks after we first discussed the looming TGA cash flood once the government reopens, this morning JPMorgan macro futures and options sales trader Marissa Gitler echoes all of our key talking points and writes that "perhaps the most important update last week week has been the end to the government shutdown. Why? Because it'll take a stressor away from the repo-market."

In an almost verbatim repeat of what we said, Marissa writes that "overall accessibility of cash in the system has been worse because the US Treasury sucked in capital due to a combination of the Gov't shutdown, TGA build up and QT. While re-opening the government may not solve the issues entirely.... It'll help."