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*** NY Fed announces will....>

US TSYS/OVERNIGHT REPO
US TSYS/OVERNIGHT REPO: *** NY Fed announces will conduct an Overnight Repo
operation today with Primary Dealers for up to $75bln, "in order to help
maintain the federal funds rate within the target range of 2 to 2-1/4%".
- Securities eligible include Treasury, agency debt, and agency MBS.
- This will be the first such operation in a decade.
- Clearly addressing severe short-term funding pressures, with overnight repo
rate shooting well above 8% today, and effective Fed Funds printing 2.25% on
Monday, according to ICAP data.

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