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Back to Back Fed Auctions?

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…

Todd Sullivan's- ValuePlays

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