TREE NEWS reports: The Federal Reserve’s overnight reverse repurchase agreement (RRP) facility took in $100 million on Friday, October 16, from a single counterparty, down from $1.201 billion the previous trading day. The drop marks a sharp contraction in usage of the central bank’s overnight liquidity-draining tool.
Fed’s Overnight Reverse Repo Facility Usage Falls to $100M
A single counterparty and a nine-figure-to-eight-figure swing in one session says more about the concentration of remaining RRP users than about system-wide liquidity. With usage this thin, the facility is effectively idle as a policy tool, and the marginal prints are noise rather than signal. The question worth watching is whether the Fed treats near-zero take-up as confirmation that reserves are no longer abundant enough to absorb drainage, which would shift attention to the pace of balance-sheet runoff.
Generated by AI for reference only.
Share on WeChat
Open WeChat → Scan → then tap "…" to send to a chat or Moments.
Tap "…" in the top-right corner to send to a chat or share to Moments.