https://www.thestreet.com/investing/fixed-income/ny-fed-doubles-down-on-repo-intervention-as-bank-cash-crisis-rattles-markets-15094169
The New York branch of the U.S. Federal Reserve added billions more
in liquidity to gummed-up intrabank lending markets Wednesday, following
the first intervention in more than a decade only yesterday, as a
worrying spike in overnight borrowing costs continues to perplex
investors and complicate today's Fed rate decision.
The
New York Fed offered $75 billion in cash to broader markets, in
exchange for eligible collateral such as U.S. Treasury bonds or
mortgage-backed securities, in order to hold the Fed's key rate inside
its target range of between 2% and 2.25%. It accepted its full
allotment, even as bids totaled $80 billion, lowing the range from 2.6%
to 3% prior to the operation to 2.25% to 2.6% immediately afterwards.
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