U.S. Markets

NY Fed will continue repo offerings into February, reducing term operations

FILE PHOTO: The cornerstone for the Federal Reserve Bank of New York is pictured in the Manhattan borough of New York City, New York, U.S., October 4, 2019. REUTERS/Carlo Allegri/File Photo

NEW YORK (Reuters) - The Federal Reserve Bank of New York on Tuesday said it will continue to offer operations in the market for repurchase agreements, or repo, into at least mid-February.

The central bank will slightly reduce the maximum on term operations, which last two weeks, to $30 billion from a previous cap of $35 billion.

The Fed also said it will continue purchasing $60 billion a month in short-term Treasury bills, keeping the same pace set in mid-October when it began growing the balance sheet to permanently increase the level of reserves in the banking system.

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Reporting by Jonnelle Marte; Editing by Sandra Maler