NEW YORK (Reuters) – Demand for the Federal Reserve’s reverse repurchase (RRP) facility has surged in the last few weeks, as the U.S. Treasury Department’s reduced supply of short-term bills left investors few options to park excess cash. Reverse repos are conducted by the New York Fed’s Open Market Trading Desk. In a reverse repo, market participants lend cash to the Fed, usually overnight, at an interest rate of 80 basis points, in exchange for Treasuries or other government securities, with a promise to buy them back. “We continue to see a grind higher in RRP balance,” said Gennadiy Goldberg, senior rates strategist at TD Securities in New York. “That’s a function of two things: first, the extreme high demand for front-end assets, and second, the amount of bills outstanding has continued to decline as Treasury has cut back supply because of fairly strong tax collections,” he added. The Fed’s reverse repo window attracted a record $2.045 trillion on Monday, as financial institutions continued to flood the facility with liquidity in exchange for Treasury collateral. Monday’s volume was one of a string of record highs for RRPs. NN: This is the fleeing cash from the crasing stock and bond markets looking for a home….. NN: Obviously cash, stocks, bonds and real estate are BAD investments. So we make money by buying oil and selling the assets that will crash like the stock market… Pretty simple but you got to use the right tools and get the timeing right.