Fed Reverse Repo Usage Shows No Sign of Slowing Amid Imbalances
- The volume jumped to a record $1.19 trillion on Tuesday
- RRP volume ‘probably goes higher,’ SocGen’s Rajappa said
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The glut of cash in U.S. interest-rate markets pushed the amount of money that investors are parking at a major central bank facility to yet another all-time high.
Eighty-two participants on Tuesday placed $1.19 trillion at the Federal Reserve’s overnight reverse repurchase agreement facility, in which counterparties like money-market funds can place cash with the central bank. That surpassed the previous record volume of $1.147 trillion from Aug. 25, New York Fed data show.