Repo Watchers Worry More Trouble Brewing in Fourth Quarter

  • ‘Confluence of events could be much worse,’ says TD’s Misra
  • Fed repo actions end Oct. 10, concerns over reserves persist

A worker walks past the Marriner S. Eccles Federal Reserve building in Washington, D.C.

Photographer: Andrew Harrer/Bloomberg
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Last month’s surge in overnight funding rates arose from a perfect storm. Other squalls may arise before year-end.

The Federal Reserve’s temporary cash injections prevented a repeat of the funding squeeze on Monday, the last day of the third quarter and a moment recent history suggests could’ve been stressful.