U.S. Fed awards $113.43 billion in reverse repos

[July 02, 2016]  NEW YORK (Reuters) - The Federal Reserve on Friday awarded $113.43 billion of four-day, fixed-rate reverse repurchase agreements to 51 bidders at an interest rate of 0.25 percent, the New York Fed said on its website.

A security guard walks in front of an image of the Federal Reserve following the two-day Federal Open Market Committee (FOMC) policy meeting in Washington, DC, U.S. on March 16, 2016. REUTERS/Kevin Lamarque/File Photo

On Thursday, the Fed allotted $278.81 billion in one-day reverse repos to 92 bidders, including Wall Street dealers, money market mutual funds and mortgage finance agencies, also at an interest rate of 0.25 percent.

The reverse repurchase agreement program is seen as a critical policy tool for the U.S. central bank to drain money from the financial system in an effort to achieve its interest rate objectives.

(Reporting by Richard Leong Editing by Diane Craft)

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