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U.S. Federal Reserve awards $95.92 billion reverse repos

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Reuters NEW YORK
Last Updated : Nov 25 2015 | 1:22 AM IST

NEW YORK (Reuters) - The Federal Reserve on Tuesday awarded $95.92 billion of overnight fixed-rate reverse repurchase agreements to 43 bidders at an interest rate of 0.05 percent, the New York Fed said on its website.

This was the smallest amount in a week when it awarded $86.16 billion to 39 bidders at the same interest rate.

On Monday, the Fed had allotted $144.6 billion in one-day reverse repos to 50 bidders, including Wall Street dealers, money market mutual funds and mortgage finance agencies, also at an interest rate of 0.05 percent.

The overnight interest rate in the repurchase agreement, or repo, market was last quoted at 0.13 to 0.16 percent, compared with 0.09 percent on Monday , according to ICAP.

In the repo market, money funds and other investors make short-term loans to banks and Wall Street dealers, which pledge Treasuries and other securities as collateral.

(Reporting by Richard Leong; Editing by Andrew Hay)

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First Published: Nov 25 2015 | 1:05 AM IST

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