NY Fed accepts $3.00m of $3.00m in bids at O/N repo op

NY Fed accepts $3.00m of $3.00m in bids at O/N repo op

The Federal Reserve Bank of New York (NY Fed) accepted $3.00 million in bids at the overnight (O/N) reverse repurchase agreement (repo) operation on July 2, 2025. This operation is part of the NY Fed's Temporary Open Market Operations (TOMO), designed to manage day-to-day trading in the federal funds market by adding or draining reserves available to the banking system [1].

Reverse repurchase agreements (reverse repos) involve the NY Fed selling securities to eligible counterparties with an agreement to repurchase them at a specified price at a future date. For these transactions, eligible securities include U.S. Treasury instruments, federal agency debt, and mortgage-backed securities issued or fully guaranteed by federal agencies [1].

The operation's outcome reflects the current demand for liquidity in the market, with the NY Fed adjusting the amount of reserves to influence short-term interest rates and maintain financial stability. As of the latest data, the NY Fed has been managing these operations to ensure a smooth functioning of the financial system, particularly during periods of heightened market volatility [1].

For more information on the NY Fed's Temporary Open Market Operations and reverse repurchase agreements, refer to the official NY Fed website [1].

References:
[1] Federal Reserve Bank of New York, Overnight Reverse Repurchase Agreements: Treasury Securities Sold by the Federal Reserve in the Temporary Open Market Operations [RRPONTSYD], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/RRPONTSYD.