Fed’s Underused Repo Ops Point to Ample Funding for End of Year
- Term and one-day forward settlement actions undersubscribed
- Overnight repo for Dec. 31 quoted around 1.95%, TD says
This article is for subscribers only.
The Federal Reserve Bank of New York’s operations to inject cash into the financing system over the end of the year were undersubscribed on Monday, an indication that pressures have abated.
Primary dealers submitted less than $19 billion of bids for a $75 billion repurchase-agreement operation that’s set to mature on Jan. 2, and just over $8 billion for a 15-day action that had a maximum possible size of $35 billion. These are the latest in a series of central bank offerings for year-end that have been undersubscribed, suggesting that dealers have ample funding going into the end of 2019.