Only very large institutions can tap the overnight repo window at that scale.
That means a major bank or a primary dealer needed the money.
A regular hedge fund cannot walk in and take $25 billion overnight on top of $50 billion last week. That kind of access and size belongs to big banks that act as the plumbing of the financial system.
Someone on Wall Street needed another $25 Billion in Overnight Repo today Dec1.
This is on top of the $50 Billion last week.
So a total of $75 billion in 1 week.
Full details here: https://t.co/d4Eo9IVivc pic.twitter.com/HoAu0VSue3
— The Coastal Journal (@1CoastalJournal) December 1, 2025
Sure pic.twitter.com/EQ2f7wG6XK
— The Coastal Journal (@1CoastalJournal) December 1, 2025
SOFR is 20bp+ higher than IORB. It appears we have a growing liquidity problem.
https://www.newyorkfed.org/markets/reference-rates/sofr
Another day, another $25B in SRF usage. SOFR-IORB is blowing out to +22bps. These are not the characteristics of a healthy system under the hood. The only saving grace is that we haven't seen confirmation from broader credit conditions that this acceleration is boiling over. https://t.co/cb613nyCsW pic.twitter.com/AcfGoIw3qM
— Invisible Fist (@matrbk) December 1, 2025
Funding pressures building again. Month-end over but SOFR 22bp over IOER. Standing repo up to $25bn. pic.twitter.com/fp8oDiBA3N
— PPG (@PPGMacro) December 1, 2025
“US financial markets show signs of strain despite calm appearances. The SOFR–IORB spread, a key dollar liquidity indicator, has surged to its highest since 2020. This means banks are paying more to borrow cash, signaling tightening liquidity. US Treasury debt issuance is draining market liquidity, creating a paradox of abundant collateral but scarce cash.”