Few thoughts: An increase in ON repo was expected but the magnitude of it was not. What makes the most sense is that there was a large amount of leverage that

Few thoughts: An increase in ON repo was expected but the magnitude of it was not. What makes the most sense is that there was a large amount of leverage that was dependent on rolling ON repo financing. Reserves are not as abundant as thought due to various financial regulations and also are not evenly distributed. The distribution matters a lot because some desks that may have been more ready/able to lend may not have had the reserves and I guess vice versa.