US Fed awards $50bn 7-day reverse repos

NEW YORK: The Federal Reserve on Thursday awarded $50.0 billion of seven-day term fixed-rate reverse repurchase agreements to 35 bidders at an interest rate of 0.06 percent, the New York Federal Reserve said on its website.

Forty-three bidders including Wall Street dealers, money market mutual funds and mortgage finance agencies submitted $74.05 billion in bids with interest rates ranging from 0.05 percent to 0.08 percent.

This was the last of the four test term RRP operations announced by the Fed in late January. At the term reverse repo operation a week ago, the US central bank allotted $50.0 billion in 7-day RRPs to 49 bidders also at an interest rate of 0.06 percent.

At that operation, 53 bidders submitted $87.68 billion in bids with interest rates ranging from 0.05 percent to 0.10 percent.