The New York Fed's overnight repo operation offering liquidity to broker-dealers was oversubscribed on Tuesday. The Fed tendered $100 billion of temporary funds in return for high-quality collateral like Treasurys and mortgage-backed bonds, with $108.6 billion of bids offered for the available funds. The longer-term 14-day repo operation of $20 billion was also oversubscribed by around 3.5 times. Tuesday's results are a reversal from the last few months which has seen take-up of the Fed's cash offerings steadily fall due to the Federal Reserve's monthly purchases of Treasury bills. The Fed's repo operations and asset purchases are designed to inject reserves into the banking system and allow dealers to lend funds to market participants that use short-term lending markets to finance their trading operations, ameliorating the funding pressures that surfaced in September and sent overnight borrowing rates to as high as 10%.