with SRF the FED sets an upper limit on repo market rates
Illya Gerasymchuk
with SRF the FED sets an upper limit on repo market rates
most of the collateral is US Treasury bonds
this exerts downward pressure on bond yields - by preventing sell-offs
SRF provides daily $500B liquidity limit for overnight repo operations
a rate is published daily & dealers lend borrow against US bonds
dealers/market makers use SRF when the rate in the open repo market gets too high
SRF = Standing Repo Facility
