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Fed accepts $105.1B at 0.25% in first reverse repo operation

Results of the first short-term repurchase and reverse repurchase agreement:

The Fed had removed the cap on the $300 billion yesterday and there were fears they would need to take on a huge amount but the $105.1B is relatively small.

The Fed has been working on these operations for awhile. There were 49 counterparties compared to 47 over the 8 day average, according to MNI. The 8-day average for repos was $88 billion.

The worry is that the Fed can't raise rates. The 0.25% rate is at the lower bound of the Fed's new 0.25% to 0.50% range so that's not the greatest sign. At 8 am ET on Friday, the first post-hike Fed funds effective rate is announced. That's the big event tomorrow.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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