RTRS: Fed drains reserves via $25 bln 1-day reverse repo
NEW YORK, Oct 2 (Reuters) - The U.S. Federal Reserve said on Thursday it drained $25.0 billion temporary reserves from the banking system via a 1-day reverse repurchase agreement, according to the New York Fed Website.
Bids submitted for the operation totaled $89.45 billion.
Immediately after the operation, federal funds in the U.S. interbank lending market traded steady at 1 percent, below the 2 percent target rate the U.S. central bank sets. (Reporting by John Parry and Richard Leong; Editing by James Dalgleish)