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Fed’s popular repo facility sees record demand of $1.35 trillion Thursday

A earlier model of this report mentioned $1.35 billion. It’s trillion.

The New York Federal Reserve Financial institution’s in style reverse repo program set a report Thursday for in a single day demand, a identical day the central financial institution doubled the restrict for particular person person to $160 billion.

This system, which permits banks, money-market funds and other financial firms to park money in a single day on the Fed, whereas incomes 5 foundation factors, has turn into more and more in style with Wall Avenue companies flush with money, who’re on the lookout for save, short-term havens to stash it.

Thursday’s operation noticed a record $1.35 trillion parked within the facility from 77 counterparties. The Fed doesn’t instantly disclose the names of particular person customers, however offers further historic information on a delayed foundation.

Expectations have been for demand to ramp greater heading into year-end, given the everyday volatility and liquidity woes that may plague monetary markets, but in addition this 12 months due to the unresolved debt-ceiling issue in Washington, a Treasury-bill market that’s been shrinking this 12 months and anticipated wrangling in Congress over President Biden’s proposed $3.5 trillion spending invoice.

Learn: Fed opens overnight repo spigot as Wall Street stares down barrel of U.S. debt-ceiling fight

U.S. shares climbed Thursday, with the Dow Jones Industrial Common
DJIA,
+1.48%

closing up 500 factors, a day after the Fed mentioned it could announce in November a plan for tapering its $120 billion in month-to-month Treasury
TMUBMUSD10Y,
1.428%

and mortgage-backed securities, and doubtlessly increase benchmark coverage charges at a faster tempo than initially anticipated.

https://www.marketwatch.com/story/feds-popular-repo-facility-sees-record-demand-of-1-35-billion-thursday-11632428186?rss=1&siteid=rss | Fed’s in style repo facility sees report demand of $1.35 trillion Thursday

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