NEW YORK (Reuters) - The Federal Reserve on Tuesday injected $105 billion (84 billion pounds) in temporary cash into the U.S. banking system in an effort to meet the funding needs of banks and Wall Street following a bout of turbulence in money markets last week.
The New York Federal Reserve awarded $30.0 billion to primary dealers at a 14-day term repurchase agreement (repo) operation and $75 billion in an overnight repo operation.
Demand for funding from the Fed was strong with $62 billion in bids submitted for the 14-day operation and $80.2 billion at the overnight operation, data from the N.Y. Fed showed.
On the open market, overnight repo rates slipped to 1.95%-2.03% after the addition of cash from the central bank, down from 2.01%-2.10% shortly before the Fed operations.
Primary dealers were able to obtain overnight funding at below-market cost.
The stop-out rate on overnight repos backed by Treasuries at Tuesday's Fed operation was 1.80%, while those on one-day repos backed by agency debt and mortgage-backed securities was 1.83%.
The N.Y. Fed will conduct an overnight repo operation, worth at least $75 billion, on Wednesday.
(Reporting by Richard Leong; Editing by Andrew Heavens and Nick Zieminski)
