FED SEEN ADDING RESERVES VIA SYSTEM REPOS
The Federal Reserve is expected to enter
the government securities market to supply reserves to the
banking system via system repurchase agreements, economists
said.
    Most economists said the Fed would execute three-day system
repurchases to meet a substantial need to add reserves in the
current maintenance period, although some said a more
aggressive add via overnight system repos was possible.
    Federal funds opened at 7-5/8 pct and remained at that
level late this morning, compared with an average effective
rate of 7.55 pct Friday.
 Reuter
