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FED Reverse Repo Operation

US
  • NY Fed reverse repo usage stepped back to $2,167B after yesterday’s quarter-end driven new record of $2,330B.
  • The number of counterparties fell back to a more typical 99 from 108 although still remains at the high end of the recent range.
  • Former Fed Governor Jeremy Stein said yesterday that the ballooning of the program is not an indication of underlying market stress but is merely tied to appeal of the rates offered on the securities (RRP rate is just 10bps below what’s offered on bank reserves) – https://blinks.bloomberg.com/news/stories/REB44ET0AFB6


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