UPDATE 1-Fed says to conduct term repos worth $100 bln

(Adds details, background)

NEW YORK, March 7 (Reuters) - The Federal Reserve said on Friday it will conduct a series of weekly term repurchase agreements worth $100 billion, with the goal of alleviating the funding tightness that has roiled the credit market.

The latest liquidity move, which followed the Fed's announcement earlier in the day that it would enlarge offerings from its Term Auction Facility, will inject more money into the financial system, aimed to encourage lending.

But the planned cash injections are not intended to put downward pressure on the Fed's target rate on federal funds, the overnight cost of borrowing surplus reserves between banks.

"This initiative is intended to address heightened pressures in term funding markets," the New York Fed said in a statement on the term repurchase, or repo program. The regional Fed conducts open market operations for the central bank.

"Going forward, specific auction details may be adjusted based on experience and market conditions," it said.

In the open market, fed funds traded at 2.9375 percent at mid-morning Friday, below the Fed's current 3.00 percent target.

The first of the special term repurchases announced on Friday will total $15 billion and settle on Monday, March 10, the New York Fed said.

U.S. primary dealers, those bond firms eligible to deal directly with the Fed, can post Treasury securities, as well as bonds and mortgage securities backed or issued by Fannie Mae (FNM.N) and Freddie Mac (FRE.N), as collateral, the New York Fed said.

In order to preserve its reserve and fed funds rate target, the Fed said it may conduct offsetting open market operations like bill redemptions, reverse repos, bill sales and changes in the sizes of regular repurchases. (Reporting by Richard Leong; Editing by Dan Grebler)