NY Fed to start second set of reverse repo tests

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The New York Federal Reserve will on Wednesday begin a new series of tests on reverse repurchase operations with primary dealers as its edges a fraction closer to exiting from the extraordinary support provided to banks at the height of the crisis.

The New York Fed's latest set of tests will involve small-scale, real-value reverse repos with banks, using all eligible types of collateral. The tests will, for the first time, include agency mortgage-backed securities from the Fed's portfolio, which

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