Fed Opens The Term Auction Facility To $100 Billion

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The Fed announced this morning that the amounts outstanding in the Term Auction Facility (TAF) will be increased to $100 billion.  The auctions on March 10 and March 24 each will be increased to $50 billion–an increase of $20 billion from the amounts that were announced for these auctions on February 29.

In addition that agency initiate a series of term repurchase transactions that are expected to cumulate to $100 billion.  These transactions will be conducted as 28-day term repurchase (RP) agreements in which primary dealers may elect to deliver as collateral any of the types of securities–Treasury, agency debt, or agency mortgage-backed securities–that are eligible as collateral in conventional open market operations.

Douglas A. McIntyre