US Fed awards $80.13bn reverse repos

02 Feb, 2016

NEW YORK: The Federal Reserve on Tuesday awarded $80.13 billion of one-day fixed-rate reverse repurchase agreements to 40 bidders at an interest rate of 0.25 percent, the New York Fed said on its website.

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 Monday, the Fed allotted $76.79 billion in one-day reverse repos to 37 bidders, including Wall Street dealers, money market mutual funds and mortgage finance agencies, also at an interest rate of 0.25 percent.

Copyright Reuters, 2016

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