US Fed accepts $1.5 bln in 5-day reverse repo operation

NEW YORK, Oct 21 (BestGrowthStock) – The U.S. Federal Reserve on
Thursday accepted $1.5 billion in Treasuries, agency bonds and
mortgage-backed securities as collateral for five-day reverse
repurchase agreements, the New York Fed said.

A total of $506 million of Treasuries were accepted at a
stop-out rate of 0.22 percent, while $528 million of agency
bonds were accepted at a stop-out rate of 0.23 percent. A total
of $466 million of mortgage-backed securities were accepted at
a stop-out rate of 0.24 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.
(Reporting by Chris Reese: Editing by Chizu Nomiyama )

US Fed accepts $1.5 bln in 5-day reverse repo operation