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On Tuesday, the U.S. central bank allotted
$81.38 billion in overnight reverse repos to 33 bidders,
including Wall Street dealers, money market mutual funds and
mortgage finance agencies, also at an interest rate of 0.05
percent.
The overnight interest rate in the repurchase agreement, or repo,
market was last quoted at 0.10 to 0.14 percent, compared with
0.18 percent on Tuesday <USONRP=GCMN>, according to ICAP.
In the repo market, money funds and other investors make
short-term loans to banks and Wall Street dealers. Banks and
dealers pledge Treasuries and other securities as collateral for
the loans.
(Reporting by Richard Leong; Editing by Diane Craft)
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