U.S. Fed reverse repo volume hits record $813.57 bln

Volume in the U.S. Federal Reserve’s reverse repurchase operation reached a record $813.573 billion on Wednesday as financial institutions continued to pour cash into the overnight facility.

The daily operation, which included 73 bidders, was up from $791.6 billion on Tuesday.

While volume has been building since March, it grew further after the Fed last week raised the rate it pays on reverse repurchase agreements to 0.05% from 0% as part of technical adjustments to keep the benchmark effective fed funds rate from falling too low.