FYI: Now that even Greece is borrowing at subzero yields, the notorious, elevated U.S. dollar repo rates of mid-September—briefly as high as 10%— look less like interest rates than typos. Is there a monetary screw loose?
The upside lurch in the cost of borrowing against prime government collateral has caused Wall Street to exclaim, “And how!” The cry has accordingly gone out for the Federal Reserve to institute a permanent fund with which to tamp down the interest rate on repurchase agreements. About a quarter-trillion dollars should do the trick, expert opinion holds.
Regards,
Ted
https://www.barrons.com/articles/timeless-wisdom-on-interest-rates-51570821128?refsec=bonds
