Fed’s popular repo facility sees record demand of $1.35 trillion Thursday

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A previous version of this report said $1.35 billion. It’s trillion. The New York Federal Reserve Bank’s popular reverse repo program set a record Thursday for overnight demand, a same day the central bank doubled the limit for individual user to $160 billion. The program, which allows banks, money-market funds and other financial firms to park cash overnight at the Fed, while earning 5 basis points, has become increasingly popular with Wall Street firms flush with cash, who are looking for save, short-term havens to stash it. Thursday’s operation saw a record $1.35 trillion parked in the facility from 77 counterparties. The Fed doesn’t immediately disclose the names of individual users, but provides additional historical data on a delayed basis. Expectations have been for demand to ramp higher heading into year-end, given the typical volatility and liquidity woes that can plague financial markets, but also this year because of the
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