U.S. Fed awards $89.32 billion of reverse repos

The Federal Reserve headquarters in Washington September 16 2015. REUTERS/Kevin Lamarque

The Federal Reserve on Friday awarded $89.32 billion of three-day fixed-rate reverse repurchase agreements to 44 bidders at an interest rate of 0.05 percent, the New York Fed said on its website.

On Thursday, the Fed allotted $86.71 billion in overnight reverse repos to 46 bidders, including Wall Street dealers, money market mutual funds and mortgage finance agencies, also at an interest rate of 0.05 percent.

The overnight interest rate in the repurchase agreement, or repo, market was last quoted at 0.20 to 0.23 percent, compared with 0.23 percent on Thursday USONRP=GCMN, according to ICAP.

In the repo market, money funds and other investors make short-term loans to banks and Wall Street dealers, which pledge Treasuries and other securities as collateral.

[Source:- REAUTERS]