Friday, 13 November 2015 01:05
NEW YORK: The US Federal Reserve awarded $ 73.23 billion of one-day fixed-rate reverse repurchase agreements on Thursday to 37 bidders at an interest rate of 0.05 percent, the New York Fed said on its website.
The U.S. bond market was closed on Wednesday for the Veterans Day holiday.
On Tuesday, the Fed allotted $ 83.13 billion in two-day reverse repos to 47 bidders, including Wall Street dealers, money market mutual funds and mortgage finance agencies, also at an interest rate of 0.05 percent.
The overnight interest rate in the repurchase agreement, or repo, market was last quoted at 0.15 to 0.18 percent, compared with 0.15 percent on Tuesday, according to ICAP.
In the repo market, money funds and other investors make short-term loans to banks and Wall Street dealers, which pledge Treasuries and other securities as collateral.
