Will there be another repo crunch at the end of June? There has always been some measure of a race for cash at the end of every quarter in US money markets as many institutional investors settle their balance sheets ahead of key performance and regulatory metrics. However, rapidly growing US Treasury cash balances at the Fed (so called Treasury General Account or TGA) this year have raised the prospect of another sizable repo stress episode. The US$1.1 trillion increase in TGA balances (work as the government’s checking account at the Fed) has directly affected the Fed’s balance sheet by draining bank reserves. If left unchanged, 2 the record TGA balance could create a sharp shortage of cash for many institutional players at the end of this quarter, potentially triggering a repo stress episode similar to December 2018 or September 2019.