The Federal Reserve Bank of New York yesterday allocated banks $18bn (â¬12.3bn) in repurchase agreements, all of which involved agency debt, one of the areas of the credit markets that is most in need of funding.
The New York Reserve said it received $55.3bn in bids from banks for overnight funding on Monday and accepted $18bn in bids at an average rate of 3.31%. It is the most that it has injected on an overnight basis since mid-November. The Fed only accepted agency debt, which is issued by US Government-sponsored agencies, as collateral.
