Wall Street, Fed prep to avoid year end disruption in repo markets

US Benchmark overnight lending rate is one of the main drivers of Liquidity in the US short term funding market. Interest rates in the overnight repurchase agreement (repo) market increased to 10%, in September 2019 which was over four times the benchmark overnight lending rate. US has made efforts to boost liquidity in cash lending markets by US central bank purchasing $60 billion monthly in Treasury bills to raise reserves level in the banking system while offering longer repo of up to 42 days and increasing size of repo by $10 billion each.
Reuters