The market is already showing bullish sentiment as today marks the official end of the Fed's quantitative tightening. Earlier in the day, the Fed injected $13.5 billion into the banking system through overnight repos, the second-largest single-day liquidity injection since COVID. However, this type of overnight repo isn’t quantitative easing. It’s more like a “liquidity patch” forced by the system being drained too dry in the short term. It’s a one-time, passive liquidity replenishment. The real factor determining whether short-term liquidity remains tight is that the SLR (Supplementary Leverage Ratio) hasn’t been relaxed. Banks still can’t expand their balance sheets, can’t absorb large amounts of U.S. Treasuries, and can’t handle the shocks from fiscal replenishment. In summary, this round of market uptick is more of an emotional reaction to the end of quantitative tightening rather than the $13.5 billion repo improving system liquidity. Whether short-term dollar liquidity can truly ease depends not on overnight repos but on whether the SLR will be adjusted. If the SLR remains under its current strict constraints, this kind of passive liquidity patching will keep happening, and the market will oscillate between being drained and being replenished, without achieving sustained liquidity easing. Bitget VIP, lower fees, crazier perks.