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U.S. Fed awards fewer reverse repos after quarter-end record

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[October 02, 2014]  NEW YORK (Reuters) - The U.S. Federal Reserve awarded fewer fixed-rate reverse repurchases on Wednesday, a day after record demand for them from banks, Wall Street dealers and money market funds at the end of the third quarter, according to the New York Fed's website.

All 53 bids worth $212.48 billion submitted were accepted Wednesday.

This compared with 81 of the 102 bids submitted worth $407.17 billion on Tuesday. The U.S. central bank allotted $300 billion in reverse repos, which is the maximum amount permitted.

Wednesday's award was the biggest for the first business day of a quarter, according to New York Fed data.

The Fed on Tuesday paid no interest on the reverse repos, in which the bidders own overnight the Treasuries that belong to the Fed.

On Wednesday, the Fed paid the qualified participants including mortgage agencies an interest rate of 0.05 percent.

(Reporting by Richard Leong; Editing by Chizu Nomiyama)

[ 2014 Thomson Reuters. All rights reserved.]

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