U.S. Fed reverse repo volume hits record $813.57 billion

June 23, 2021 2:46 PM EDT

FILE PHOTO: Federal Reserve Board building is pictured in Washington, U.S., March 19, 2019. REUTERS/Leah Millis/File Photo

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(Reuters) - Volume in the U.S. Federal Reserve's reverse repurchase operation reached a record $813.573 billion on Wednesday as financial institutions continued to pour cash into the overnight facility.

The daily operation, which included 73 bidders, was up from $791.6 billion on Tuesday.

While volume has been building since March, it grew further after the Fed last week raised the rate it pays on reverse repurchase agreements to 0.05% from 0% as part of technical adjustments to keep the benchmark effective fed funds rate from falling too low.

(Reporting By Karen Pierog; Editing by Chris Reese)

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