U.S. Fed accepts $1.29 bln in 3-day reverse repos

NEW YORK, Oct 18 (BestGrowthStock) – The U.S. Federal Reserve on
Monday accepted $1.29 billion in Treasuries, agency bonds and
mortgage-backed securities as collateral for three-day reverse
repurchase agreements, the New York Fed said.

A total of $860 million of Treasuries were accepted at a
stop-out rate of 0.22 percent, while $215 million of agency
bonds were also accepted at a stop-out rate of 0.22 percent. A
total of $215 million of mortgage-backed securities were
accepted at a stop-out rate of 0.23 percent.

In a reverse repo, the central bank exchanges
mortgage-backed securities, agency bonds or Treasuries for cash
with bond dealers and money market mutual funds. This is a tool
for the Fed to reduce the $1 trillion of excess reserves in the
banking system.

U.S. Fed accepts $1.29 bln in 3-day reverse repos