The United States Federal Reserve’s reverse repurchase program raked in record inflows overnight after lawmakers approved an extension of government spending to December 3.
- The reverse repo program collected $1.605 trillion of cash from 92 firms that took part in the operation.
- This comes as Congress on Thursday approved a measure to extend government spending until December 3, avoiding a partial shutdown just hours before the deadline.
- The demand was attributed to analysts’ forecasts as early as August, amid the decline in the Treasury-bill market and the historically volatile year-end period.
- The Fed earlier this month doubled the cap each counterparty can park to the overnight facility to $160 billion each, with the program gaining popularity in the past months.