Operating Policy

Statement Regarding Repurchase Operations

In accordance with the Federal Open Market Committee (FOMC) directive issued September 18, 2019, the Open Market Trading Desk (the Desk) at the Federal Reserve Bank of New York will conduct a series of overnight and term repurchase agreement (repo) operations to help maintain the federal funds rate within the target range.

The Desk will offer three 14-day term repo operations for an aggregate amount of at least $30 billion each, as indicated in the schedule below. The Desk also will offer daily overnight repo operations for an aggregate amount of at least $75 billion each, until Thursday, October 10, 2019. Awarded amounts may be less than the amount offered, depending on the total quantity of eligible propositions submitted. Securities eligible as collateral include Treasury, agency debt, and agency mortgage-backed securities. Additional details about the operations will be released each afternoon for the following day’s operation(s).

After October 10, 2019, the Desk will conduct operations as necessary to help maintain the federal funds rate in the target range, the amounts and timing of which have not yet been determined.

Schedule of Overnight and Term Repurchase Agreement Operations

Operation Date Overnight 14-day Term Term Maturity Date Monday, 9/23/2019 $75 billion No term operation Tuesday, 9/24/2019 At least $75 billion At least $30 billion Tuesday, 10/08/2019 Wednesday, 9/25/2019 At least $75 billion No term operation Thursday, 9/26/2019 At least $75 billion At least $30 billion Thursday, 10/10/2019 Friday, 9/27/2019 At least $75 billion At least $30 billion Friday, 10/11/2019 Monday, 9/30/2019 – Thursday, 10/10/2019 At least $75 billion No term operations

For Monday, September 23, 2019, the Desk will conduct an overnight repo operation for an aggregate amount of up to $75 billion. The operation will be conducted from 8:15 AM ET to 8:30 AM ET. Primary Dealers will be permitted to submit up to two propositions per security type. There will be a limit of $10 billion per proposition submitted in this operation. Propositions will be awarded based on their attractiveness relative to a benchmark rate for each collateral type, and are subject to a minimum bid rate of 1.80 percent.