On Tuesday, the Fed allotted $82.27 billion in one-day reverse repos to 34 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 highest since July 6 when the Fed awarded $83.40 billion to 39 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.