There will be several additional offerings that will inject at least another $425 billion into a market that provides critical short-term funding for banks
Also, overnight repo operations on Dec. 31 and Jan. 2 will rise to at least $150 billion. Finally, the trading desk on Dec. 30 will offer a $75 billion repo that matures on Jan. 2.
Regular repo operations are for very short duration, but term repos run longer — often around three months but occasionally up to a year.its own operations to keep the market secure, following a spike in interest rates the day before due to a cash crunch. Among the issues that led to the spike were a rush of corporate tax payments and a large Treasury auction settlement, compounded by the unwillingness of banks with large levels of reserves to step in to provide liquidity.
The announcement is significant in that it follows concerns expressed in several quarters about whether the Fed's previous moves to quell the repo market were enough.stating that the issues from September could arise again.warned in an extensive analysis
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