(Bloomberg) -- Primary dealers flocked to the Federal Reserve’s repo operations on Tuesday, signaling a need for cash to satisfy liquidity demands heading into the end of the third quarter.
The first of this week’s three 14-day term repurchase-agreement operations by the New York Fed was twice oversubscribed. Dealers submitted $62 billion of securities, more than the $30 billion offered by the central bank.
In a second action, the N.Y. Fed took $75 billion of securities in an overnight repo operation -- the maximum amount -- with dealers submitting about $80 billion of assets.
The bank’s measures came as overnight general collateral repo rates climbed anew Tuesday after trading back within the Fed’s target range late last week. The rate traded at about 2.06%, up from below 2% the past few business days, according to ICAP (LON:NXGN) data.
(Adds overnight operation.)