A earlier model of this report mentioned $1.35 billion. It’s trillion.
The New York Federal Reserve Financial institution’s fashionable reverse repo program set a file Thursday for in a single day demand, a similar day the central financial institution doubled the restrict for particular person consumer to $160 billion.
This system, which permits banks, money-market funds and other financial firms to park money in a single day on the Fed, whereas incomes 5 foundation factors, has develop into more and more fashionable with Wall Avenue companies flush with money, who’re in search of save, short-term havens to stash it.
Thursday’s operation noticed a record $1.35 trillion parked within the facility from 77 counterparties. The Fed doesn’t instantly disclose the names of particular person customers, however supplies extra historic knowledge on a delayed foundation.
Expectations have been for demand to ramp increased heading into year-end, given the standard volatility and liquidity woes that may plague monetary markets, but in addition this yr due to the unresolved debt-ceiling issue in Washington, a Treasury-bill market that’s been shrinking this yr and anticipated wrangling in Congress over President Biden’s proposed $3.5 trillion spending invoice.
U.S. shares climbed Thursday, with the Dow Jones Industrial Common
closing up 500 factors, a day after the Fed mentioned it might announce in November a plan for tapering its $120 billion in month-to-month Treasury
and mortgage-backed securities, and doubtlessly increase benchmark coverage charges at a faster tempo than initially anticipated.