The US Fed has succeeded in flooding market with cash. U.S. commercial bank deposits grew by more than $420b from the end of February to March 18—an extraordinary amount that puts March on track for a year’s worth of deposit growth, according to Brian Foran of Autonomous Research.
One consequence has been that repurchase agreement or repo rates are calm. Trends in repo indicate “cash supply is abundant,” analysts at KBW wrote. Created with Highcharts 6.1.1
https://www.wsj.com/articles/now-banks-problem-is-too-much-cash-11585911603