New York Fed keeps repo spigot open with additional $500B

The New York Fed’s Open Market Trading Desk will conduct an additional overnight repo agreement operation from 1:30PM-1:45 PM ET for up to a total offered amount of $500B.

“This action is taken to ensure that the supply of reserves remains ample and to support the smooth functioning of short-term U.S. dollar funding markets,” the New York Fed said in a statement.

Repo operations are used to keep short-term lending markets operating smoothly.

In this morning’s overnight repo operation, the Fed accepted all $129.6B of bids submitted; the Desk’s operation limit for the morning was $175B.

ETFs: XLF, FAS, FAZ, VFH, UYG

https://seekingalpha.com/news/3552096-new-york-fed-keeps-repo-spigot-open-additional-500b