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Record $74.6 Billion Draw on Fed’s Standing Repo Facility Caps Year-End Funding Crunch

Market participants largely attribute the surge to seasonal balance-sheet pressures.

Overview

  • On December 31, eligible firms tapped $74.6 billion from the New York Fed’s Standing Repo Facility, surpassing the prior single-day peak of $50.35 billion on October 31.
  • The borrowing was backed by $43.1 billion in mortgage-backed securities and $31.5 billion in Treasuries, an unusual collateral mix that drew scrutiny.
  • A day earlier, the Fed supplied $16 billion via overnight repos, bringing December repo Treasury purchases to about $40.32 billion.
  • China’s central bank added 1.02 trillion yuan in seven-day reverse repos on December 31 after a 312.5 billion yuan injection the previous day.
  • Analysts expect the funding demand to fade as reporting-period effects pass, though the scale and timing keep central-bank liquidity tools in focus for early 2026.