2025-12-12 18:26:39

The Federal Reserve's reverse repo operation saw a notable pullback this week. Only 6 counterparties participated, drawing down $838 million compared to the previous operation's $2.874 billion haul from 7 bidders. The declining participation and smaller bid volume could signal shifts in overnight funding dynamics and banks' liquidity positioning—something worth watching if you're tracking broader money market trends and their potential ripple effects on crypto trading volumes.

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ForkInTheRoad

· 1h ago

Reverse repurchase agreements are shrinking again, and bank liquidity is really starting to tighten.

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RebaseVictim

· 21h ago

What does the shrinking of reverse repos indicate? Are the banks starting to band together?

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GasFeeSobber

· 12-12 18:54

Hmm... liquidity is tightening again. This rhythm feels a bit familiar.

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NFTArchaeologis

· 12-12 18:51

This round of reverse repurchase shrinkage is a bit like a slow period in the antique market, where trading volume is subdued, and liquidity is quietly shifting... Keep an eye on it.

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LiquiditySurfer