This is a first and probably necessary due to the unfulfilled demand in the first auction on Aug. 11th.
On August 12, 2008, the Federal Reserve conducted an auction of $50 billion in 28-day credit through its Term Auction Facility. Following are the results of the auction:
Stop-out rate: 2.450 percent
Total propositions submitted: $75.462 billion
Total propositions accepted: $50.000 billion
Bid/cover ratio: 1.51
Number of bidders: 65
Now, rates cam down considerably from the 8/11 auction and this may have simply been and issue to the lower number of bids vs available fund.
It is a bit concerning that $75 billion had to be auctioned in back to back days…
Visit the ValuePlays Bookstore for Great Investing Books