On Friday, the Fed had allotted $122.99 billion in three-day reverse repos to 50 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 0.05 to 0.09 percent, compared with 0.09 percent on Friday, 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.