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Fed Meeting and the Repo Rate

Posted by RodgerRafter 
Fed Meeting and the Repo Rate
June 22, 2007 08:09PM
The FOMC meeting is next week and the Fed Funds Futures are showing no chance of a rate cut, but the Repo rate remains far below the target rate for Fed Funds:

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Banks pay 5% to borrow from the Fed if they have treasuries to use as collateral. They pay about 0.25% more if they use Agency or other mortgage backed securities.

Edited 2 time(s). Last edit at 06/22/2007 09:43PM by RodgerRafter.


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Re: Fed Meeting and the Repo Rate
January 08, 2008 04:09PM
I did not know that is how it worked. Interesting.
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