One color hedges

. but also on the demand side, which as Claudo Borio, head of the monetary and economic department at the BIS, explained was the result "high demand for secured (repo) funding from non-bank financial institutions, such as hedge funds heavily engaged in leveraging up relative value trades."

They are hedging that a future price will follow the safe rate. So when that rte is not safe their variances go beyond any predictability in future price.

But, as Zero hedge points out, that rate is a two color production line of mostly government and regulated banks with the primary dealers in charge. So, the Fed has to go two color otherwise the primary dealer loop causes cycles. But the Fed is a monopsony, we cannot run from that.  So we gotta jump up the intelligence of the senators that they get clues. Go full three color, full monty.