NY Fed accepts $5.00M of $5.00M in bids at O/N repo op

NY Fed accepts $5.00M of $5.00M in bids at O/N repo op

NY Fed Conducts Full Acceptance of Bids in Overnight Repo Operation
On March 4, 2026, the Federal Reserve Bank of New York (NY Fed) executed an overnight repurchase agreement (repo) operation, accepting the full $5.00 million in bids submitted by eligible counterparties. This operation, part of the Federal Reserve's Standing Repo Facility (SRF), underscores the central bank's ongoing efforts to manage liquidity and support smooth functioning in money markets according to the SRF FAQ.

The SRF, established by the Federal Open Market Committee (FOMC) in July 2021, serves as a backstop to ensure effective monetary policy transmission. It operates with a minimum bid rate set by the FOMC (currently 5.50%) and an aggregate operation limit of $500 billion as specified in the SRF documentation. In this instance, the total amount of propositions received ($5.00 million) was well below the daily cap, resulting in full acceptance of all bids at the rates submitted by participants.

Repo operations are conducted via the NY Fed's FedTrade system using a multiple-price auction format. Under this format, allocations are made at the bid rates submitted by counterparties, provided they meet or exceed the minimum bid rate. When demand is below the aggregate limit, as in this case, all propositions are accepted in full. The minimum proposition size for SRF operations is $1 million, with increments in $1 million denominations as noted in the SRF guidelines.

The accepted securities included U.S. Treasuries, agency debt, and agency mortgage-backed securities, all of which are eligible collateral under SRF guidelines. Trades resulting from the operation were settled through the tri-party repo platform operated by the Bank of New York Mellon, as standard for SRF transactions.

The NY Fed publishes detailed results of such operations, including total amounts submitted and accepted, weighted-average award rates, and stop-out rates. These results enhance transparency and provide market participants with insights into liquidity conditions.

This operation reflects the Fed's commitment to maintaining stable short-term funding conditions, particularly as it navigates evolving monetary policy objectives. With the SRF operational parameters unchanged, the facility remains a critical tool for addressing potential liquidity imbalances in the financial system.

According to the SRF FAQ: Federal Reserve Bank of New York, FAQs: Standing Repurchase Agreement Operations (July 2021).