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US TSYS/OVERNIGHT REPO: ON RRP Hits Fresh Post-Pandemic Low As FOMC Eyes Tweak

US TSYS/OVERNIGHT REPO

Takeup of the Fed's overnight reverse repo facility fell $25B to $110.8B today - the lowest level since April 2021, and now down around $70B in 3 sessions.

  • Today's pullback is not a major surprise as it comes amid large Treasury auction settlements, but the overall trend seems clearly to the downside and comes as the FOMC is likely this week to debate reducing the offer rate on the facility by 5bp vs other administered rates.
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Takeup of the Fed's overnight reverse repo facility fell $25B to $110.8B today - the lowest level since April 2021, and now down around $70B in 3 sessions.

  • Today's pullback is not a major surprise as it comes amid large Treasury auction settlements, but the overall trend seems clearly to the downside and comes as the FOMC is likely this week to debate reducing the offer rate on the facility by 5bp vs other administered rates.