NEW YORK (Reuters) – The Federal Reserve on Wednesday awarded $92.13 billion of overnight fixed-rate reverse repurchase agreements to 37 bidders at an interest rate of 0.05 percent, the New York Fed said on its website.
On Tuesday, the U.S. central bank allotted $81.38 billion in overnight reverse repos to 33 bidders, including Wall Street dealers, money market mutual funds and mortgage finance agencies, also at an interest rate of 0.05 percent.
The overnight interest rate in the repurchase agreement, or repo, market was last quoted at 0.10 to 0.14 percent, compared with 0.18 percent on Tuesday <USONRP=GCMN>, 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.
(Reporting by Richard Leong; Editing by Diane Craft)