Fed plans to reduce afternoon and some term repo liquidity operations

The Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York has released the schedule of large-scale overnight and term repurchase agreement (repo) operations for the monthly period from April 14, 2020 through May 13, 2020.

The Desk intends to reduce the frequency of some repo operations during this monthly period in light of more stable repo market conditions.  Beginning on Monday, May 4, 2020, the Desk intends to return to regularly conducting one overnight repo operation per day in the morning, and to remove the afternoon overnight repo operation.  In addition, the frequency of three-month repo operations will be reduced to once every two weeks from once a week.  The Desk will continue to conduct one-month repo operations once per week.

The Desk will continue to adjust repo operations as appropriate to ensure that the supply of reserves remains ample and to support the smooth functioning of short-term U.S. dollar funding markets, consistent with the FOMC directive to the Desk.

Detailed information on the schedule and parameters of term and overnight repo operations are provided on the Repurchase Agreement Operational Details page.

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