Zoom Stock – U.S. Fed reverse repo volume hits record $992 bln
June 30 (Reuters) – Volume in the U.S. Federal Reserve’s reverse repurchase operation reached a record $992 billion on Wednesday as financial institutions continued to pour cash into the overnight facility.
The daily operation, which included 90 bidders, was up from Tuesday’s record $841.2 billion.
While volume has been building since March, it grew further after the Fed earlier this month raised the rate it pays on reverse repurchase agreements to 0.05% from 0% as part of technical adjustments to keep the effective federal funds rate from falling too low. (Reporting By Karen Pierog; editing by Diane Craft)