ON-RRP
Overnight Reverse Repurchase Agreement Facility -- the Fed-administered rate available to money market funds, GSEs, and other non-bank counterparties that cannot earn IORB directly. ON-RRP plays the same floor-setting role for non-banks as IORB plays for banks, preventing short-rates from falling below the Fed-administered floor and tightening the policy-rate transmission to the broader money-market complex. The size of overnight ON-RRP usage is also a signal of how much excess cash is sloshing in the financial system.
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Related terms
10Y Treasury · Altman Z-Score · Asset Sensitivity · Basel III · Bond ETF · Bretton Woods
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