Fed Begins Tri-Party Reverse Repos With Money Market Funds
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The Federal Reserve said it is conducting tri-party reverse repurchase agreements as policy makers prepare for the eventual withdrawal of monetary stimulus.
The two-day transactions, part of a series of open-market operations that began in 2009, don’t represent any change in monetary policy, according to a statement posted June 7 on the Federal Reserve Bank of New York’s website. Treasuries, agencies and agency mortgage-backed securities will be eligible collateral today.