Fed Reverse Repo Facility Balances Fall Below $100 Billion for First Time Since 2021

Reported about 22 hours ago

The Federal Reserve's overnight reverse repurchase agreement (RRP) facility balances have dipped below $100 billion for the first time since 2021, falling to $98.4 billion as investors respond to a recent rate reduction. This decline, attributed to an adjustment that lowered the RRP rate to align with the lower bound of the federal funds target range, marks a significant drop from the $2.55 trillion peak recorded in December 2022. Analysts suggest this trend signals decreasing demand for RRP as Treasury bill yields become more attractive.

Source: YAHOO

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