Demand for Fed money up in latest auction facility

Results of the latest Term Auction Facility operation reveal a slight rise in demand for Federal Reserve funds.

The bid-to-cover ratio rose from 1.25 in the late-January auction to 1.95 in Monday's operation. The number of banks bidding also jumped to 66 from 52.

The stop-out rate was slightly higher than the federal funds target at 3.01%. In both of the January auctions it was well below the target, though this may well have reflected the market's belief that the Fed was soon to slash rates.

To continue reading...

You must be signed in to use this feature.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: