Fed Injects $7 Billion of Temporary Reserves Into Banking System

The Federal Reserve added $7 billion in reserves to the U.S. money market this morning in overnight repurchase agreements.

The New York Federal Reserve Bank accepted $4.5 billion in mortgage-backed securities as collateral and $2.5 billion in government agency securities.

The NY Fed was forced to cancel a money market intervention it had scheduled for 9:30 am New York time this morning because of technical problems with its electronic system. It replaced that with the latest, a 10:30 am operation.

Earlier this morning the NY Fed said it thought an open-market operation would be "needed to accommodate heightened reserve needs typical on a Treasury mid-quarter refunding date."