Treasury Repo collateral placement fails. Evil site had an explanation, but it was inside baseball. They did say the takeaway is the really heavy number of shorts are rolling contracts so there just wasn't enough collateral around. With FOMC Meister saying yes to the September rate hike and Brainard saying she is data dependant I am guessing the odds are increasing.
Should add that higher US rates drive policy normalization, and I do think the current FOMC wants to be closer to normal before they leave office by the end of next year. It also allows Draghi to have some breathing room to start normalization without crossing the 1.20 line. Of course this would allow PBoC to increase without raising the Yuan to the Dollar. Remember they are all doing this very careful dance of trying to increase rates without upsetting currency markets.
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