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Fed Reverse Repo Use Hits Fresh Record as Investors Hide in Cash

From bnnbloomberg.ca

The amount of money that investors are parking at a major Federal Reserve facility climbed to yet another all-time high as funds sought out places to stash short-term cash. Some 101 participants on Wednesday put a total of $2.367 trillion at the Fed’s overnight reverse repurchase agreement facility, in which counterparties like money-market funds can place cash with the central bank. The previous record was $2.359 trillion set on Sept. 22. The facility pays an overnight rate of 3.05% -- which increased from 2.30% on Sept. 22 after the Fed hiked its main policy rate by the same increment. It’s the highest yield the ... (full story)

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  • Category: Fundamental Analysis