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IPFS News Link • Federal Reserve

Fed's "Most Important Rate" Falls For First Time Since February

• by Tyler Durden

... had hammered overnight and short-term rates, with G/C repo flipping between positive and negative for the past two weeks as the record reserve glut pushes short-term rates to zero and in some cases lower (of note, overnight G/C repo traded first traded at 0.02%, according to ICAP with a bid-ask spread 0.05%/0.03% in early morning trading).

One place where this pressure on short-term funding had been absent, was in what Bloomberg calls the Fed's "most important rate", the Effective Fed