Federal Reserve to Offer $50 Billion in Term Auction Facility
Published March 24th, 2008
The Federal Reserve will auction $50 billion in 28-day credit on Monday through its Term Auction Facility (TAF), the central bank announced.
The Fed will accept bids Monday from 11 a.m. to 1 p.m. EDT. Auction results will be announced at 10 a.m. on March 25. Loans will settle on March 27 and mature on April 24.
The minimum bid amount is $5 million at increments of $100,000. The minimum bid rate is 2.19%.
The Fed announced in early March that it would increase TAF auction amounts in March to $50 billion for each of the two March auctions, up from the $30 billion auctions conducted in January and February.
The Fed initiated the TAF auctions in December 2007 to help alleviate stress in the short-term lending markets, in response to weakening credit conditions and the growing unwillingness of banks to lend to each other on a short-term basis.
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