NEW YORK, June 30 The Federal Reserve awarded a
record amount of reverse repurchase agreements to banks, money
market funds and mortgage finance agencies on Monday, according
to the New York Federal Reserve.
The U.S. central bank has ramped up testing of its
fixed-rate reverse repo program which it created to help achieve
its interest rate target when it decides to move away from its
current near-zero rate policy.
The central bank on Monday issued $339.5 billion of these
overnight loans to 97 bidders to whom it will pay an overnight
rate of 0.05 percent, the New York Fed said on its website.
This was more than double the $140.9 billion the Fed awarded
(Reporting by Richard Leong; Editing by James Dalgleish)