The Federal Reserve Bank of New York in lower Manhattan. The bank added $49.7 billion to the financial system Monday.
Claudio Papapietro for The Wall Street Journal
Sept. 23, 2019 9:00 am ET
The Federal Reserve Bank of New York added $49.7 billion to the financial system Monday, using the market for overnight repurchase agreements, or repo, to relieve funding pressure in money markets. Banks asked for $49.7 billion in overnight reserves, offering collateral in the form of U.S. Treasury and mortgage securities. The New York Fed had offered to add at least $75 billion daily to the financial system through Oct. 10.
Rates on short-term repos briefly spiked to nearly 10% last week as financial firms scrambled for overnight funding. The actions marked the first time since the financial crisis that the Fed had taken such transactions.
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