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Fork In The Road


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Every little bit helps. Seems a tad late in the day, doesn't it?

 

Reuters

Fed's coupon pass adds $994 mln in reserves

Wednesday February 19, 3:19 pm ET

 

NEW YORK, Feb 19 (Reuters) - The Federal Reserve said on Wednesday it added $994 million in permanent bank reserves by buying U.S. Treasury coupons dated June 30, 2004, through November 30, 2004, only its second such purchase this year.

 

Delivery was set for Thursday.

 

Earlier, The Fed added $9 billion in temporary reserves through a round of overnight repos, a net drain of $6 billion after the central bank had added a whopping $15 billion of overnight repos a day earlier.

 

But anal cysts at Wrightson Associates said the Fed would likely need Thursday to add the biggest amount of temporary reserves since the emergency actions after Sept. 11, with the amount of repos in place falling from $34.5 billion to just $12 billion. Another coupon pass injecting permanent reserves might also be necessary.

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The coupon pass is a drop in the bucket. Wrightson is speculating that Al will refund all the expiring repos, especially the Snowzilla repo. I doubt it. See Feed chart and sicussion in tonight's Anals.

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