We’re still stumbling upon sell-side research calling for pandemonium in US onshore money markets before the turn of the year. As we reasoned in our November 22 Morning Comment, such turmoil is unlikely to appear. In fact, the Fed’s injections of reserves into the banking system will result in the most uneventful year turn and least volatile overnight GC repo rate since… well, we will have to go back many years to find as little volatility in GC overnight repo as we have had in the past several weeks.

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