The Federal Reserve Bank of New York has just announced it will provide up to $1 trillion per day in repo funding over the next month.

The open markets desk will conduct two $500 billion operations – one in the morning and one in the afternoon – each business day until April 13.

Banks’ demand for repo funding has been reliably low and stable this week, but the move sends the message that the Fed stands ready to meet virtually any increase in demand over the coming months.

“This action is