Temporary liquidity provided by the Federal Reserve Bank of New York increased sharply Tuesday and approached peak levels seen at the start of the year.

On Tuesday, the Fed intervened in financial markets with two repurchase agreement operations, or repos. The overnight repo, which has a cap of $150 billion, saw eligible banks draw $123.63 billion from the central bank. The Fed’s 14-day repo saw very high demand: Banks sought $93 billion and got $45 billion, the most allowed.

...