Fed Reverse Repo Use Tops Half a Trillion Dollars for First Time
- QE, Treasury drawdown will keep pushing cash into front end
- Take-up at facility could double by year-end: Credit Suisse
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Demand for a key Federal Reserve facility used to help control short-term rates surged to more than half a trillion dollars for the first time ever, accommodating a barrage of cash in search of a home.
Fifty-nine participants on Wednesday parked a total of $502.9 billion at the overnight reverse repurchase facility, in which counterparties like money-market funds can place cash with the central bank. That surpassed the previous record volume of $497.4 billion from Tuesday, New York Fed data show.