At its January 2015 meeting, the Federal Open Market Committee (FOMC) approved the Authorization for Domestic Open Market Operations that authorized the Selected Bank (the Federal Reserve Bank of New York) to undertake certain open market transactions for the purpose of testing operational readiness.
In connection with this authorization, the Federal Reserve Bank of New York’s Open Market Trading Desk (the Desk) intends to conduct two small-value repo operations next week. The transactions will have an overnight tenor and will be conducted with the primary dealer community from approximately 9:40 – 9:50 a.m. ET with same-day settlement. The first will be a Treasury-only repo operation on Tuesday, May 19, followed by a multi-tranche (Treasury, agency, and agency MBS) repo operation on Wednesday, May 20. Each dealer will be limited to one $10 million proposition in each tranche of these operations.
These small-value repo operations are a matter of prudent advance planning by the Federal Reserve. The operations have been designed to have no material impact on the level of reserves or on market rates. These operations do not represent a change in the stance of monetary policy, and no inference should be drawn about the timing of any change in the stance of monetary policy in the future.The results of these operations will be posted on the public website of the Federal Reserve Bank of New York together with the results for other temporary open market operations. The outstanding amount of repo is reported as a factor supplying reserves in Table 1 in the Federal Reserve's H.4.1 statistical release and as an asset items in Tables 5 and 6 of that release