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New York Fed Repo Facility Draws Record $74.6 Billion on Year-End Funding Day

Analysts described the surge as a seasonal funding maneuver, not a signal of broader strain.

Overview

  • Eligible counterparties borrowed $74.6 billion from the Standing Repo Facility on Dec. 31, exceeding the prior single-day peak of $50.35 billion on Oct. 31.
  • The borrowing was secured by $31.5 billion in Treasuries and $43.1 billion in mortgage-backed securities, according to New York Fed data.
  • The New York Fed also scheduled a second repo operation at 1:45 p.m. ET that day and an intake of cash via its reverse repo facility.
  • The standing repo serves as a temporary, collateralized lending backstop that borrowers must repay rather than a permanent asset purchase program.
  • Market participants expect usage to recede as year-end balance-sheet pressures abate, reflecting a pattern seen around key calendar dates in 2025.