Term Repurchase Agreements: Federal Agency Securities Purchased by the Federal Reserve in the Temporary Open Market Operations

RPTMAGYD • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

0.02

Year-over-Year Change

N/A%

Date Range

12/1/2020 - 9/24/2024

Summary

Term repurchase agreements (repos) represent short-term borrowing transactions where the Federal Reserve purchases federal agency securities with an agreement to resell them later. These transactions are critical for managing liquidity and implementing monetary policy in the financial system.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

Repos are temporary open market operations that allow the Federal Reserve to inject or withdraw short-term liquidity from the banking system. Economists closely monitor these transactions as they provide insights into market funding conditions and central bank monetary interventions.

Methodology

Data is collected through direct reporting from Federal Reserve transactions and compiled using standardized financial reporting protocols.

Historical Context

These repo transactions are used to fine-tune monetary policy, manage short-term interest rates, and stabilize financial market liquidity.

Key Facts

  • Repos are short-term, collateralized lending mechanisms
  • They help the Federal Reserve manage banking system liquidity
  • Transactions typically occur within days or weeks

FAQs

Q: What is a repurchase agreement?

A: A repurchase agreement is a short-term borrowing transaction where securities are sold with an agreement to repurchase them at a slightly higher price, effectively functioning as a collateralized loan.

Q: Why do central banks use repos?

A: Central banks use repos to manage short-term interest rates, provide liquidity to financial markets, and implement monetary policy objectives.

Q: How are repo rates determined?

A: Repo rates are influenced by factors like overnight lending rates, market liquidity, and the Federal Reserve's monetary policy stance.

Q: What types of securities are used in these repos?

A: Federal agency securities, such as those issued by Fannie Mae or Freddie Mac, are commonly used in these Federal Reserve repo transactions.

Q: How frequently is repo data updated?

A: Repo transaction data is typically updated daily, providing real-time insights into short-term financial market conditions.

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Citation

U.S. Federal Reserve, Term Repurchase Agreements: Federal Agency Securities Purchased by the Federal Reserve in the Temporary Open Market Operations [RPTMAGYD], retrieved from FRED.

Last Checked: 8/1/2025