REPO market crisis

$IREN $QBTS $DKNG $DDOG

Hello traders,

The “repo market” is where financial firms borrow cash overnight using safe securities (like government bonds) as collateral.

Right now, demand for repo funding is booming (due to heavy issuance of government debt and leveraged trading strategies) while banks and dealers are constrained in providing lending.

Because of this imbalance, repo rates (the cost of borrowing cash against collateral) have spiked, indicating stress in the short-term funding market.

This matters to investors because if banks or dealers pull back from funding, liquidity can dry up, broader interest rates can jump, and risk assets can suffer like we are seeing during last sessions.

Volatility is likely to persist until the Fed provides immediate relief, which would help market makers maintain stable liquidity in equities.

Key levels to watch on the $VIX to understand market makers liquidity control.

21$ is the key ZERO GEX which means market makers have more calls to hedge vs puts above this level, below volatility gets crushed as they try to stabilize the market while buying dips.

As we can see again this morning price action on VIX.

Now let’s jump into earnings data with IREN 0.00%↑