Ten counterparties participated in a Federal Reserve reverse repurchase agreement operation, taking in $856 billion. This operation is part of the Fed’s standard tools for managing money market conditions after previous phases of quantitative tightening, helping to drain excess reserves from the banking system. By offering counterparties the ability to exchange cash for securities overnight, these reverse repos play a crucial role in providing a floor for short-term interest rates.
10 counterparties take $856M at Fed reverse repo operation
