By Michael S. Derby 

The New York Fed added $56.65 billion in liquidity to financial markets on Friday.

In a repurchase agreement operation that will expire on Monday, the Fed took in $47.95 billion in Treasurys, $500 million in agency securities, and $8.2 billion in mortgage backed securities.

The Fed's operation is part of an effort to help tame volatility in short-term rate markets with temporary and permanent injections of liquidity. Fed repo interventions take in Treasury and mortgage securities from eligible banks in what is effectively a loan of central bank cash, collateralized by dealer-owned bonds.

On Thursday, the Fed added $104.15 billion in temporary liquidity.

Write to Michael S. Derby at michael.derby@wsj.com<mailto:michael.derby@wsj.com>

(END) Dow Jones Newswires

October 18, 2019 10:33 ET (14:33 GMT)