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.
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(END) Dow Jones Newswires
October 18, 2019 10:33 ET (14:33 GMT)
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