(Bloomberg) — The Federal Reserve Bank of New York’s
operation to inject cash into the financial system over the end
of the year was undersubscribed on Thursday, possibly an
indication of diminishing need for funding over that period.
Primary dealers submitted $31.3 billion in bids for the
Fed’s 14-day term repo operation, the first two-week offering
that spans year-end.
*The NY Fed’s $120 bn overnight repo demand dwindled to $26.25 bn or just a 21.9% subscription rate. Once again, the lack of need speaks to the cash in the funding market to start the day eating up available collateral
Worries about year end liquidity starting to dissipate , reminder Fed is throwing almost 1/2 trillion dollars at problem