The return of quarter-end spikes in repo rates suggests dealer intermediation limitations rather than reserve scarcity, so it should not impact the Fed's QT timeline. September quarter-end saw a marked spike in SOFR as well as a notable $2.3b draw on the Fed's Standing Repo Facility. But quarter-end spikes in repo rates have been occurring for over a decade and are well understood. While the development could be indicative of reserve scarcity, the sizable RRP […]