Fed’s Reverse Repo Facility Usage Sinks Below $300 Billion
- Counterparties parked $292 billion on Tuesday: New York Fed
- Balances have been dropping amid resurgence in bill supply
The Federal Reserve in June started shrinking its balance sheet at a slower pace, reducing the amount of Treasuries it lets roll off every month.
Photographer: Valerie Plesch/BloombergThis article is for subscribers only.
The amount of money investors park at a major Federal Reserve facility dropped below $300 billion for the first time since 2021.
Sixty participants on Tuesday put a combined $292 billion at the Fed’s overnight reverse repurchase agreement facility, which is used by banks, government sponsored enterprises and money-market mutual funds to earn interest. It marks a steep decline from a record $2.554 trillion stashed on Dec. 30, 2022, according to New York Fed data.