The latest figures from the Federal Reserve Bank of New York (under "Temporary Open Market Operations") show Fed reverse repos totaling $242 billion as of March 31. The site explains, "To implement monetary policy, short-term repurchase and reverse repurchase agreements are used to temporarily affect the size of the Federal Reserve System's portfolio and influence day-to-day trading in the federal funds market." Wells Fargo Securities' Garret Sloan explained Tuesday in his daily commentary, "Participation in the Federal Reserve reverse repo program rose to a record high of $242 billion yesterday, surpassing the previous record of $197 billion that was set on December 31. Participation in the program had declined in early-to-mid March as the increase in Treasury collateral available put upward pressure on repo rates which reduced the demand for the 5 basis point Federal Reserve program. However, the amount of Treasury collateral is beginning to decline as there will be a net pay down this week just shy of $17 billion which should put downward pressure on repo rates. The decline in supply is expected to continue as the Treasury will cut bill sizes as we approach the deadline for the filing and payment of taxes on April 15. The weighted average Treasury repo rate did increase yesterday to 9.9 basis points but now that quarter end is behind us it is expected to fall back to the 6 basis point range as repo is opening this morning at 5-6 bps." Note: Crane Data will release its March 31 Money Fund Portfolio Holdings collection next Tuesday, April 8.

Email This Article




Use a comma or a semicolon to separate

captcha image

Daily Link Archive

2024 2023 2022
March December December
February November November
January October October
September September
August August
July July
June June
May May
April April
March March
February February
January January
2021 2020 2019
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2018 2017 2016
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2015 2014 2013
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2012 2011 2010
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2009 2008 2007
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2006
December
November
October
September