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Fed’s overnight reverse repo facility usage rises to $353 million

The Federal Reserve’s overnight reverse repurchase agreement (RRP) facility absorbed $353 million on Thursday, October 29, from four counterparties, up from $176 million the prior trading day, when the central bank left rates unchanged. The figures reflect the modest take-up of the Fed’s floor tool as policymakers hold their stance.

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AI take

The move is notable less for its size than for its persistence near the bottom of the facility's historical range: a handful of counterparties parking a few hundred million dollars signals that the floor tool is doing little work while policymakers hold rates steady. For money-market desks, the relevant read is that the RRP remains a residual outlet rather than a binding constraint, so its weekly swings carry little signal on their own. Whether take-up stays this marginal as the Fed's stance holds is the open question worth watching.

Generated by AI for reference only.

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