NEW YORK: The Federal Reserve on Monday awarded $116.64 billion of one-day, fixed-rate reverse repurchase agreements to 45 bidders at an interest rate of 0.25 percent, the New York Fed said on its website.
This was the highest amount since March 31 when the central bank awarded $303.85 billion in reverse repos to 99 bidders.
On Friday, the Fed allotted $87.5 billion in three-day reverse repos to 38 bidders, including Wall Street dealers, money market mutual funds and mortgage finance agencies, also at an interest rate of 0.25 percent.
The reverse repurchase agreement program is seen as a critical policy tool for the US central bank to drain money from the financial system in an effort to achieve its interest rate objectives.
Copyright Reuters, 2016
Courtesy : BRecorder