NEW YORK (Reuters) - 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 on Friday.
Reporting by Richard Leong; Editing by James Dalgleish