NEW YORK (Reuters) - The Federal Reserve Bank of New York said on Monday it will run a "small-value" repurchase operation on Wednesday morning, including several tranches of Treasuries and agency-backed securities, in order to prepare for an eventual interest rate hike.
The "small-value" repo operation will "have an overnight tenor," the New York Fed said. It is designed to have no material impact on market rates or the level of reserves, and does not signal a change in overall monetary policy, it added.
Dealers will be limited to one $10-million bid in each tranche of the operation that runs between approximately 9:40-9:50 a.m. ET (14:40-14:50 GMT) on Wednesday.
(Reporting by Jonathan Spicer; Editing by Meredith Mazzilli)
