The situation seemed dire. The federal government had a ton of debt to sell, and many market-watchers, maybe most of them, were growing worried about how it could. It wasn't just a matter of demand, more so the issue of financing. The repo market was sending some very negative signals, and if the repo market isn't working properly the ability of the system to absorb Treasury issuance is in doubt.
The headline for one Financial Times article was talking about how repo was being undermined at a particularly sticky moment:
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