美联储

Investors’ use of Fed overnight facility falls to lowest in a year

Usage of reverse repo facility falls by more than $200bn this month as money market funds slowly move into Treasuries
The Federal Reserve’s overnight reverse repo facility was established permanently in 2014, and is designed to suck up excess cash in the financial system

Usage of a Federal Reserve facility that allows investors to park their cash overnight has dropped to its lowest level in a year, as US money market funds instead add to their holdings of government debt.

Investors on Thursday stashed $1.93tn in the Fed’s overnight reverse repo facility (RRP), where cash is stored risk-free for a generous return. That is the lowest amount in a year, down by more than $200bn this month.

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