Economic Indicators8 hours ago (Mar 16, 2020 12:31PM ET)
U.S. overnight repo rate jumps, Fed announces new liquidity operation
(Reuters) – The cost of borrowing in the overnight repurchase agreement (repo) market jumped as high as 2% on Monday in volatile trading, before the New York Federal Reserve said it would offer a second overnight repo operation.
The Fed said it would add an additional operation of up to $500 billion at 1:30 p.m. eastern on Monday. The added support is meant to “ensure that the supply of reserves remain ample and to support the smooth functioning of short-term U.S. dollar funding market,” it said.
The cost of the overnight repo loans fell back to 1% after the Fed statement.
U.S. overnight repo rate jumps, Fed announces new liquidity operation
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