FRBNY’s Open Market Trading Desk Adjusts Minimum Bid Rate on Repo Operations
Posted on 06/14/2020
On June 11, 2020, the Open Market Trading Desk at the Federal Reserve Bank of New York released the schedule of large-scale overnight and term repurchase agreement (repo) operations for the monthly period from June 12, 2020 through July 13, 2020. In its opinion, Open Market Trading Desk is adjusting the minimum bid rate and timing of repo operations given the substantial improvements in U.S. dollar funding market conditions.
According to the press release, “Beginning June 16, 2020, the Desk will set the minimum bid rate on overnight and one-month term repo operations equal to the rate of interest on excess reserves (IOER) on the day of the operation plus an additional spread of five and ten basis points, respectively. In addition, beginning June 22, 2020, the Desk plans to shift daily overnight repo operations to the afternoon.”
Keywords: Federal Reserve System.
