### Comment:
Is it possible there's only 1 or 2 bad apples in the repo market and they are the ones driving up average yields.  Maybe contagion risk isn't widespread but it's a widely circulated bank about to crater.  DB has taken a beating for years

### REPLY:
That's one theory I've heard. The other is Eurodollar carry sucking money out of the system. If the latter case were true, I wouldn't expect yields to spike while volume dries up.  
  
 I think a problem bank is more likely.

### END.