Fed Intervenes With $49.9 Billion Overnight Repo
October 23 2019 - 9:55AM
Dow Jones News
By Michael S. Derby
The New York Fed added $49.845 billion in one-day liquidity to
financial markets Wednesday.
The overnight repurchase agreement operation took in $42.254
billion in Treasurys, $100 million in agency securities and $7.5
billion in mortgage-backed securities. Banks that participated
collectively sought less liquidity that the Fed was willing to
offer.
Wednesday's operation by the Fed 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.
Write to Michael S. Derby at michael.derby@wsj.com
(END) Dow Jones Newswires
October 23, 2019 09:40 ET (13:40 GMT)
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