I am seeing some questionable commentary. Like this via Bloomberg: Relying on repo operations doesn’t resolve the issue of reserves declining as the Treasury rebuilds balances, Hornbach wrote in a note. Having regular operations will also increase market uncertainty as the Fed could halt purchases at any time, while the size of its buying will have to expand over time as reserves drop, he said. Seriously? The Fed isn’t going to randomly halt the repo operations. And yes, they are going to keep increasing the size of the purchases if needed. And if the shortage continues, the Fed is going to boost reserves via ... (full story)