Fed ups repo operations to $500B

The Fed makes a number of changes “to address highly unusual disruptions in Treasury financing markets associated with the coronavirus outbreak.”

The three major U.S. stock averages pare their declines. The S&P 500 falls 6.0% after having declined as much as 8.8%; the Nasdaq -5.7% vs. 8.7% earlier, and the Dow -6.0% vs. 9.6% earliers.

The central bank will conduct Treasury purchases across a range of maturities as part of its $60B reserve management purchases for the month starting March 13.

Today, the Open Market Trading Desk will also offer $500B in a three-month repo operation at 1:30 PM ET.

Tomorrow, it will further offer $500B in a three-month repo operation and $500B in one-month repo operation for same-day settlement.

Bank stocks pare their declines with the news. Bank of America (NYSE:BAC), which had fallen as much as 11% earlier, is now down 5.1%.  JPMorgan Chase (NYSE:JPM), which lost as much as 10% earlier, is down 5.4%.

ETFs: XLF, FAS, FAZ, VFH

https://seekingalpha.com/news/3551136-bazooka-fed-ups-repo-operations-to-500b