NEW YORK: The Federal Reserve on Wednesday awarded $95.35 billion of one-day, fixed-rate reverse repurchase agreements to 48 bidders at an interest rate of 0.25 percent, the New York Fed said on its website.
On Tuesday, the US central bank allotted $121.65 billion in one-day reverse repos to 41 bidders, including Wall Street dealers, money market mutual funds and mortgage finance agencies, also at an interest rate of 0.25 percent.
Tuesday's amount was the largest since June 30, when $278.81 billion was awarded to 92 bidders.
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.
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