The Reaping! Fed’s Overnight Reverse Repo Hit New Record High Of $497.4 Billion (Fed Funds Effective Rate Only 6 Basis Points) 10Y Treasury Auction Sees High Yield Drop Below 1.5%

by confoundedinterest17

This reminds me of the film “The Reaping.”

The Fed’s overnight reverse repo facility hit a new record high on Tuesday, rising to an all-time high of $497.4 billion.

The New York Fed conducts overnight reverse repo operations each day as a means to help keep the federal funds rate in the target range set by the Federal Open Market Committee. And above the lower bound of zero percent. Although the effective Fed Funds rate is only 0.06% or 6 basis points.

The 10-year auction results were just posted. As expected, the 10Y high yield rate fell from 1.684% to 1.497%.

Rollercoaster!

Indirect demand is the highest since August 2020.