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Overnight financing: SOFR depends on overnight transactions from several Treasury repo markets. Rate: The difference between the purchase and resale price of the Treasury determines the rate.
SOFR is based on the Treasury repurchase market (repo), Treasuries loaned or borrowed overnight. [5] SOFR uses data from overnight Treasury repo activity to calculate a rate published at approximately 8:00 a.m. New York time on the next business day by the US Federal Reserve Bank of New York. [12]
On the morning [2] of Tuesday, September 17, interest rates on overnight repo transactions experienced a sudden and unexpected [2] [17] [24] increase. [2] [25] During the trading day, interest rates on overnight repo transactions went as high as 10 percent, [25] [26] with the top 1 percent of transactions reaching 9 percent.
The so-called overnight reverse repurchase agreement rate, one of two technical lending rates the Fed uses to ensure the federal funds rate stays within its monetary policy target range, is ...
Wednesday’s Federal Reserve policy decision was fairly boring for investors — officials kept interest rates the same, just as they have since July 2023. The Fed announced a big change today.
Additional tools at the Fed's disposal are: the overnight reverse repurchase agreement facility, discount rate, and open market operations. The target range is chosen to influence market interest rates generally and in turn ultimately the level of activity, employment and inflation in the U.S. economy. [3]
The cost of borrowing U.S. 10-year Treasuries in the overnight repurchase, or repo market, went deeply negative on Thursday, analysts said, as investors sought to short the notes, causing market ...
The FOMC left rates unchanged the day after the Bankruptcy of Lehman Brothers. Official Statement: August 5, 2008 2.00% 2.25% 10–1 The Federal Open Market Committee decided today to keep its target for the federal funds rate at 2 percent. Official statement: April 30, 2008 2.00% 2.25% 8–2 The FOMC cut rates by 25 basis points.