OREANDA-NEWS. March 20, 2015. The Federal Reserve on Thursday awarded \\$83.11 billion of overnight fixed-rate reverse repurchase agreements to 39 bidders at an interest rate of 0.05 percent, the Federal Reserve Bank of New York said on its website.

On Wednesday, the US central bank allotted \\$151.42 billion in overnight reverse repos to 47 bidders including Wall Street dealers, money market mutual funds and mortgage finance agencies, also at an interest rate of 0.05 percent. Demand for overnight RRPs tends to fall on the day when the Fed offers longer-term RRPs.

Earlier Thursday, the Fed awarded \\$75 billion in 14-day term RRPs to 52 bidders at an interest rate of 0.09 percent. The overnight interest rate in the repurchase agreement (repo) market was last quoted at 0.05 to 0.10 percent, down from 0.14 percent on Wednesday, according to ICAP.

In the repo market, money funds and other investors make short-term loans to banks and Wall Street dealers. Banks and dealers pledge Treasuries and other securities as collateral for the loans.