Note how I only focused on your assertion that 36bps "does not make a big difference". That is a strong opinion that is not based on market reality and also ha

Note how I only focused on your assertion that 36bps "does not make a big difference". That is a strong opinion that is not based on market reality and also has several incorrect assumptions baked into it. Based on continued references to "banks eating the cost", you seem to think that banks are the only ones involved in these transactions. They aren't and not understanding that means that it's very hard to understand the life of a repo transaction. The simple mechanics of a repo transaction are easy to explain but there are a lot of individual parts underlying each transaction. The individual parts sum up to a pretty complex beast that is hard to understand. Reducing this to "can't banks just eat the costs?" is borderline misinformation which does no one any good. I previously gave a trade example that is a likely cause (or something similar) of the market events that transpired this week. It's a good example of how 36bps matters (my original point of contention). The NY Fed has a very good guide to the repo markets [1]. Hope these help. [1] https://www.newyorkfed.org/medialibrary/media/research/staff_reports/sr740.pdf https://www.newyorkfed.org/medialibrary/media/research/staff...