Term Auction Facility: No Demand for Year End Money

November 12th, 2008 11:18 am | by John Jansen |

The Federal Reserve announced the results of an auction  for money which will be made available on December 22 and which would expire on January 09 2009. There was virtually no demand for the money. The Central Bank offered $150 billion and it received bids for less than $13 billion.

There would appear to be a surfeit of funds in the system and  given this result one can surmise the system is well lubricated for the rigors of year end.

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  1. 2 Responses to “Term Auction Facility: No Demand for Year End Money”

  2. By Alex on Nov 12, 2008 | Reply

    http://www.marketwatch.com/news/story/treasury-offer-further-funds-banks/story.aspx?guid={16BC7589-E008-46C9-B3BE-19176A1B72B0}&siteid=bnbh

  3. By John on Nov 12, 2008 | Reply

    Could you illuminate the comment about year ends? Is it that backs/dealers etc. want their balance sheet to look as cash rich as possible at year end?

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