Fed makes biggest injection since 9/11

The New York Federal Reserve injected $47.25bn on Thursday, the biggest daily amount since 19 September 2001, but got most of it back as previous repos matured.

The Fed was estimated to have added $6 bn overall in liquidity in a bid to ease interbank rates. The Libor for the dollar on Thursday was 4.95%, 45 basis points above the federal funds rate.

Over $24mn of the collateral offered in exchange for federal funds was mortgage backed.

The Fed injected the $47.25bn through an overnight, a wee