The only bonds that are eligible for new Fed's lending facility are the ones that were purchased on or before 3/13. So you won't be able to fully arbitrage by b

The only bonds that are eligible for new Fed's lending facility are the ones that were purchased on or before 3/13. So you won't be able to fully arbitrage by buying bonds and borrowing against them and closing arbitrage. Fed will make sure that the only banks who use new facility - are the ones who desperately need liquidity, like in SVB's situation plus you pay overnight rate+10 basis points, so it is not totally free money either