All articles tagged with #reverse repo
The People's Bank of China has cut its seven-day reverse repurchase rate by 10 basis points, from 2% to 1.9%, for the first time since August. The move injects 2 billion yuan ($279.97 million) through its 7-day repos and is aimed at providing short-term borrowing for dealers in government securities.
Deposit outflows from banks to money-market funds are putting pressure on the Federal Reserve's overnight reverse repurchase facility, which borrows from money funds and other firms in exchange for securities such as Treasurys and then returns the money the next day. The facility offers interest on firms' cash balances, but some analysts say the flows add to bank-system stress. Money-market fund assets are increasing at a record clip, with much of that cash making its way to the Fed's program.