The U.S. central bank on Wednesday said it extended several measures aimed at enhancing liquidity in the credit markets.
The Federal Reserve moves included the introduction of longer terms to maturity in its term auction facility. Also, the Fed said it will extend the primary dealer credit facility and term securities lending facility through Jan. 30, 2009 “in light of continued fragile circumstances in financial markets.”
For reprint and licensing requests for this article, click here.
Yields are soaring into the double digits on bonds and loans funding the AI infrastructure buildout. Bankers are finding it more difficult to offload risk to insurers and other investors.
The Federal Open Market Committee's voting history heading into previous elections might shed light on how it approaches this week's decision.
A split Congress has often been a bullish recipe for Treasuries. Benchmark 10-year yields have been lower on average one and 12 months after midterms that produced such a result.
There is broad agreement that asset size alone is not the best way to measure a bank's systemic footprint. But getting equally broad consensus on another, better approach could be difficult.
Traders priced in a roughly coin-toss probability that the U.S. central bank boosts rates at its October meeting after consumer prices advanced at the fastest pace in five months.
