The Federal Reserve Bank of New York announced that it has increased the daily overnight repo operations’ upper limit to $150 billion from $100 billion and the two-week operations on March 10 and 12 to $45 billion from $20 billion.
“Adjustments are to ensure supply of reserves remains ample and to mitigate the risk that money market pressures could hurt policy implementation,” the bank said in a statement and added that it will continue to adjust repo operations as needed.
Market reaction
This announcement doesn’t seem to be having a noticeable impact on the market sentiment. As of writing, the 10-year US Treasury bond yield was down 46.6% on a daily basis.
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