🚨 The #CDS spread of some European Banks has now surpassed the level seen during the UK Mini Budget Crisis!

Banking jitters on the European side of the Atlantic are flaring up again.

Markets will likely seek the next weakest link after #CreditSuisse pic.twitter.com/eR76Crsml0

— jeroen blokland (@jsblokland) March 24, 2023

Looks like the new FIMA Repo facility for foreign central banks got its first big drawdown – $60b.

It's confidential, so we don't know who drew down. You'd think the Swiss, but they also have FX swap access so wouldn't really need this. pic.twitter.com/96feaJo9b9

— Joseph Wang (@FedGuy12) March 23, 2023

We also see a sizable amount of USTs being borrowed from the Fed's securities lending window, too. Near record amount the past few weeks also backing up the huge prices in Tbills. pic.twitter.com/lmMkCRkNac

— Jeffrey P. Snider (@JeffSnider_AIP) March 24, 2023

All this collateral demand shows how the global monetary tide is still rolling back and it is likely to keep revealing all those who have been swimming naked. Credit Suisse or SVB were just the most obvious and closest to shore. pic.twitter.com/ef3j1yjp2K

— Jeffrey P. Snider (@JeffSnider_AIP) March 24, 2023

The $76 billion drop in USTs at FRBNY is the second biggest on record. The only one bigger was Mar '14 when the Russians were sanctioned out of theirs. This week was even more (one-week change) than any time in 2008 or 2020. pic.twitter.com/V50I0G3u9q

— Jeffrey P. Snider (@JeffSnider_AIP) March 24, 2023

So, yeah, Jay Powell talking about his great new tools should be watching instead how those tools aren't doing what he's promising (which is why they always have to keep inventing new tools). pic.twitter.com/wsWUvmpPsg

— Jeffrey P. Snider (@JeffSnider_AIP) March 24, 2023

Good Morning from #Germany, where banks are among the big losers in Europe. Since the outbreak of the banking crisis in early March, both Commerzbank and Deutsche Bank have lost more than average w/ -21% and -19.8%. pic.twitter.com/wxLH0usuoN

— Holger Zschaepitz (@Schuldensuehner) March 24, 2023