Fed Reverse Repo Use Climbs to Almost $1 Trillion at Quarter End
- Ninety counterparties tapped the facility, the most since 2016
- Demand has yet to peak as debt ceiling reinstatement nears
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Demand for a key Federal Reserve facility used to help control short-term rates surged to a record high of close to $1 trillion, accommodating a barrage of cash in search of a home that’s only set to grow.
Ninety participants on Wednesday parked a total of $992 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 $841.2 billion from Tuesday, New York Fed data show. The number of counterparties was the most since 2016, while the leap in volume was the biggest since June 17.