NEW YORK (Reuters) - The U.S. Federal Reserve on Friday awarded $41.16 billion of three-day, fixed-rate reverse repurchase agreements to 29 bidders at an interest rate of 0.25 percent, the New York Fed said on its website.
On Thursday, the Fed allotted $30.36 billion in one-day reverse repos to 21 bidders, including Wall Street dealers, money market mutual funds and mortgage finance agencies, also at an interest rate of 0.25 percent.
Thursday’s amount was the smallest since June 15, when the U.S. central bank awarded $28.31 billion to 20 bidders, according to New York Fed data.
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