To implement monetary policy, short-term repurchase and
reverse repurchase agreements are used to temporarily affect
the size of the Federal Reserve System's portfolio and influence
day-to-day trading in the federal funds market.
1
Repo = Repurchase Agreement. Reverse RP = Reverse Repurchase Agreement. MSP = Matched Sale Purchase (replaced by Reverse RPs in December 2002).
2
Calendar day count (as opposed to business day count) between Delivery and Maturity dates. Repurchase Agreements may be anywhere from overnight to 65 business days.
3
For Repo, Stop Out Rate is the lowest rate accepted. For Reverse Repo, the Stop Out Rate is the highest rate accepted.
4
Weighted Average refers to the weighted average rate of the accepted propositions.
