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NY Fed opens then cancels repo operation

|By:, SA News Editor

The New York Federal Reserve no sooner announces its first overnight repurchase agreement operation in a decade to "help maintain the federal funds rate within the target range of 2 to 2-1/4%," then headlines flash that the operation is cancelled "due to technical difficulties."

Bloomberg headline reports the NY Fed will reopen the repo operation as soon as possible.

The district Fed bank had announced a repo operation for as much as $75B from 9:30 AM-9:45 AM ET today.

Securities eligible as collateral in the repo included Treasury, agency debt, and agency mortgage-backed securities.

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