Fed to add another $60 billion in February

The Federal Reserve said on Friday that it will inject an extra $60 billion into the money markets through two term-auction facility operations.

The two operations, each of which will pledge $30 billion in loans with a 28-day maturity, will take place on 11 and 25 February and are designed to alleviate liquidity tensions.

In a bid to encourage smaller institutions to participate in the operations, the Fed has lowered the minimum bid rate to $5 billion from $10 billion in previous auctions.