NEW YORK: The Federal Reserve on Monday awarded $94.12 billion of one-day, fixed-rate reverse repurchase agreements to 51 bidders at an interest rate of 0.25 percent, the New York Fed said on its website.
This was the highest amount since $114.57 billion in reverse repos were awarded to 62 bidders on Jan. 29.
The reverse repurchase agreement program is seen as a critical policy tool for the U.S. central bank to drain money from the financial system in an effort to achieve its interest-rate objectives.
On Friday, the Fed allotted $56.92 billion in three-day reverse repos to 39 bidders, including Wall Street dealers, money market mutual funds and mortgage finance agencies, also at an interest rate of 0.25 percent.
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