Fed to conduct $25 bln TSLF auction Thursday

NEW YORK, Jan 7 (Reuters) - The U.S. Federal Reserve will undertake a 28-day $25 billion Term Securities Lending Facility auction on Thursday, accepting Schedule 1 collateral in exchange for Treasuries, the New York Fed website announced on Wednesday.

Dealers can lend out the Treasuries in exchange for short-term cash loans in the U.S. repurchase market to help shore up balance sheets that have been eroded by the global credit crisis.

For details click here (Reporting by Chris Reese; Editing by Leslie Adler)