This is the largest jump since the auction was established.
Results:
On August 11, 2008, the Federal Reserve conducted an auction of $25 billion in 84-day credit through its Term Auction Facility. Following are the results of the auction:
Stop-out rate: 2.754 percent
Total propositions submitted: $54.800 billion
Total propositions accepted: $25.000 billion
Bid/cover ratio: 2.19
Number of bidders: 64
The jump from the last auction was almost .5%, by far the largest jump.
This will crimp the interest earnings increases banks like Citi (C), Wells Fargo (WFC) and JP Morgan (JPM) enjoyed in Q2, unless they are able to pass the increase onto consumers.
Disclosure (“none” means no position): Long C, WFC, None
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