Amadeusz Juskowiak

Fed expected to add temporary reserves

The Federal Reserve is expected to enter the US Government securities market to add temporary reserves economists said

They expect it to supply the reserves indirectly by arranging a fairly large round two billion dlrs or more of customer repurchase agreements The Fed may add the reserves directly instead via System repurchases

Federal funds which averaged 602 pct on Friday opened at 618 pct and traded between there and 6116 pct Funds are under upward pressure from settlement of recently sold twoyear notes and from a Treasury tax and loan call on banks

Reuter