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Tags: new york | fed | repo

New York Fed Boosts Repo Offerings for Year-End Period

New York Fed Boosts Repo Offerings for Year-End Period
(Funtap-P/Dreamstime)

Thursday, 12 December 2019 04:15 PM EST

The New York Federal Reserve will up the amount of liquidity it provides to overnight lending markets during a critical period at year end, the regional central bank said on Thursday.

The New York Fed announced a total of 10 longer-term operations in the market for repurchase agreements, or repos. The longest term repo will last 32 days and be offered on Monday, which is expected to be a tough day for liquidity.

That offering will be for a minimum of $50 billion, targeting firms that want to lock in funding before the end of the year. Most of the term operations will last about two weeks.

The central bank is also increasing the size of overnight repo operations to at least $150 billion from $120 billion starting on Dec. 31. The greater liquidity at year end will be offered at a time when some large banks are expected to reduce their lending in the repo market in an effort to shrink their balance sheets and avoid higher capital surcharges.

© 2022 Thomson/Reuters. All rights reserved.


Economy
The New York Federal Reserve will up the amount of liquidity it provides to overnight lending markets during a critical period at year end, the regional central bank said on Thursday.
new york, fed, repo
170
2019-15-12
Thursday, 12 December 2019 04:15 PM
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