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A BIS Quarterly Review box examines the mid-September 2019 spike in US dollar repo rates, when SOFR more than doubled and intraday ranges reached about 700 basis points. It attributes the stress partly to a structural concentration of liquid assets among four marginal lender banks.
Funding market stress mainly affects financial conditions and dollar liquidity rather than physical feed supply, so the direct effect on feed commodity prices is limited.
bis.orgDec 8, 2019After 4,478 past macro events, US Dollar (Broad) moved a median +0.0% over 5 sessions (51% higher; middle half -0.4% to +0.5%), and +0.1% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
