TAF auctions hint at liquidity improvement

The results of the latest term auction facility (TAF), the mechanism launched by the Federal Reserve in December to provide short-term funds to banks through the worst of the liquidity drought, have offered indications that the funding situation in the US is improving.

At the most recent auction, held on May 19, the stop-out rate - the lowest interest rate bid the Fed accepted from a bank wanting funds - reached a low of just 2.1%. More significantly, the bid was just 11 basis points above the 1

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: