"What Is Going On With Swap Spreads?": Goldman Warns All Hell About To Break Loose In Repo

One month ago, at the end of September the repo market glitched and froze up when due to a sudden shortage of systemic liquidity sparked by the Fed's QT and declining Fed reserve balances (where $3 trillion has emerged as a magic number for the LCLoR, or Lowest Comfortable Level of Reserves), repo rates suddenly spiked to levels last seen during the chaos of the peak covid pandemic.

Fast forward to today when the repo mess is back and is stumping even veteran Goldman STIR trader Vincent Mistretta, who is looking at the blow out in swap spreads and admits that he doesn't have any singular explanation as to what is going on.