Fed Reverse Repo Use Hits $1.6 Trillion on Last Day of Quarter
- Usage of facility rose by most in one day since middle of June
- Debt-ceiling concerns also swirling and affecting money market
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The amount of money that investors are parking at a major Federal Reserve facility climbed to yet another all-time high on the final trading day of the third quarter, just as anxiety is growing that the U.S. could breach its borrowing limit next month.
Ninety-two participants on Thursday placed a total of $1.605 trillion at the Fed’s overnight reverse repurchase agreement facility, in which counterparties like money-market funds can place cash with the central bank. The previous record, set the day before, was $1.416 trillion. Thursday’s leap was the biggest one-day increase in usage since mid-June.