The combination of quarter-end and new rules for the Fed’s RRP program were felt in full force today. The $300 bio daily maximum was hit, with $407.167 bio of bids submitted. The market cleared at 0%. The low bid was -0.20%. By limiting the size of the collateral on offer, the Fed pushes cash lenders to be more aggressive in their bidding. Dealer repo markets were zero to negative early this morning although volume was light. The confluence of quarter-end window dressing (the Fed is a great counterparty to have), dealer squeezing down on balance sheets and the change in the rules for the program can make the repo market volatile, with small position shifts creating outsized technically-driven rate swings. The results from the Fed can be found here.