Demand for Fed money up in latest auction facility
The bid-to-cover ratio rose from 1.25 in the late-January auction to 1.95 in Monday's operation. The number of banks bidding also jumped to 66 from 52.
The stop-out rate was slightly higher than the federal funds target at 3.01%. In both of the January auctions it was well below the target, though this may well have reflected the market's belief that the Fed was soon to slash rates.
In
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