Fed to conduct afternoon repo ops for rest of the week

Though just a month ago, the Fed was expecting to taper off its repurchase agreement (repo) operations in April, the central bank has apparently scrapped that plan as it faces the economic fallout from the coronavirus.

Now it’s conducting an additional $500B of overnight repo ops each afternoon for the rest of the week, after already holding afternoon sessions on Monday and Tuesday.

All told, that’s $2.5T of additional liquidity on top of the morning repo ops it was already conducting.

The moves help ensure that banks have ample reserves and to support the smooth functioning of short-term U.S. dollar funding markets.

ETFs: XLF, FAS, FAZ, VFH

https://seekingalpha.com/news/3552660-fed-to-conduct-afternoon-repo-ops-for-rest-of-week