Are we paying attention to FRED - why are banks frantically sell off Treasury bonds and Mortgages?
Banks are saying they have a capital and liquidity issue. They are selling off all their bonds (like taking your gold and diamonds to a pawn shop) and mortgage securities (like taking your clothes, food, and furniture).
USAA (and navy fed) is in a worst case scenario as most of our deposits come DoD / Government pay (or social security) food stamps no longer being paid out, etc.
2021: zero banks went to repo market to sell or "pawn" assets
2022: zero banks went to repo market to sell or "pawn"assets
2023:zero banks went to repo market to sell or "pawn"assets
2024:zero banks went to repo market to sell or "pawn"assets
2025:zero banks went to repo market to sell or "pawn"assets
2025: Sept $6.5B in treasury and $1.5B in Mortgage Backed)
October: $6.6B in treasury and $8.6B in Mortgage Backed)
Also, look at the dates - its right before pay day. USAA was expecting $7B in direct deposits on the 30th and 15th. In Sept we utilized the remaining liquidity we had and went to repo market. In oct looks like we sold a LOT and are paycheck to paycheck.
Layoffs will be the least of our problems - hint, change your direct deposit to your alternate bank. Another hint, yea someone will most likely bail us out - but with their company.
(this topic is much deeper and more complex) this is just the high points with a few facts.
https://www.newyorkfed.org/markets/desk-operations/repo