U.S. Fed reverse repo volume hits record $992bn

Volume in the U.S. Federal Reserve's reverse repurchase operation reached a record $992 billion on Wednesday as financial institutions continued to pour cash into the overnight facility.

The daily operation, which included 90 bidders, was up from Tuesday's record $841.2 billion.

While volume has been building since March, it grew further after the Fed earlier this month raised the rate it pays on reverse repurchase agreements to 0.05pc from 0pc as part of technical adjustments to keep the effective federal funds rate from falling too low.