The Federal Reserve (Fed) New York branch has injected money into the financial market today. To increase stability in the market After fluctuations in overnight loan rates last week In the midst of tight liquidity
The New York Fed has injected 30 billion dollars today. Through 14-day repo measures, in addition to injecting $ 7.5 billion in liquidity through overnight repo measures
The New York Fed will inject $ 7.5 billion in liquidity through overnight repo measures every day until October 10, and will carry out two 14-day repo measures worth at least 30 billion dollars a day. Thursday and this Friday
The overnight repo interest rate fell to 1.95-2.05% after injecting Fed’s liquidity today. From before at 2.01-2.10%
The New York Fed has previously injected liquidity into the financial markets on 17-18 September, totaling over 100 billion dollars. In order to prevent the rise in overnight interest rates By injecting 7.5 billion dollars into the market on 18 September after injecting more than 5.3 billion dollars on 17 September to extract overnight interest rates that are rising near. Touch 10% level
Such liquidity injection Considered for the first time since the Fed in 2008.
Analysts said The spike in overnight interest rates is due to the tight market liquidity. As the business sector has to reserve cash for tax payment in the third quarter.