The U.S. Federal Reserve on
Thursday granted $70.52 billion of one-day, fixed-rate reverse
repurchase contracts to 31 bidders at a rate of interest of 0.25
percent, the New york city Fed stated on its site. On Wednesday, the Fed set aside $79.37 billion in one-day
reverse repos to 28 bidders, consisting of Wall Street dealers,
money market mutual funds and home mortgage finance firms, likewise at
a rate of interest of 0.25 percent.
The reverse repurchase agreement program is seen as a.
important policy tool for the U.S. central bank to drain cash.
from the financial system in an effort to attain its interest.
( Reporting by Richard Leong; Modifying by Alan Crosby).