Latest / Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Watch the Repo Market So Closely
In this episode, Lucas and Luna unpack the repo market — the plumbing that lets banks borrow cash overnight using government bonds as collateral. They explain why a spike in repo rates in September 2019 forced the Federal Reserve to intervene, and how repo markets signal stress in the broader financial system. With a nod to the current environment in late August 2026, they discuss why central banks treat repo as a canary in the coal mine, and how repo dynamics affect your mortgage and your savings. No jargon, just clarity on a market that rarely makes headlines but matters more than most…
The skinny
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