Banks offered more than the New York Fed would take Tuesday for its $35 billion repo operation, which will run through Nov. 5. The Federal Reserve Bank of New York injected $99.9 billion in temporary liquidity and $7.5 billion in permanent reserves into financial markets Tuesday. The banks didn’t take all the liquidity offered by the Fed in the overnight repo operation, but they offered more than the Fed would take for the term operation, with $52.2 billion submitted to the Fed. Tuesday’s intervention is part of an effort to help tame volatility in short-term rate markets with temporary and permanent injections of liquidity. The Fed injected $58.15 billion in overnight liquidity into financial markets on Monday.

Source: Wall Street Journal October 22, 2019 13:38 UTC