By Michael S. Derby 

The Federal Reserve Bank of New York injected $99.9 billion in temporary liquidity into financial markets Tuesday

The injection came via $64.90 billion in overnight repurchase agreements with eligible banks, and with a $35 billion repo operation that will run through Nov. 5. The banks didn't take all the liquidity offered by the Fed in the overnight repo, but they offered more than the Fed would take for the term operation, with $52.2 billion submitted to the Fed.

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

Monday the Fed injected $58.15 billion in overnight liquidity into financial markets.

Write to Michael S. Derby at michael.derby@wsj.com

(END) Dow Jones Newswires

October 22, 2019 09:48 ET (13:48 GMT)