The Federal Reserve Bank of New York issued another "Statement to Revise Terms of Overnight Reverse Repurchase Agreement Operational Exercise" Friday, which raises the rate on its reverse repo program temporarily to 10 basis points. They say, "As noted in the October 29, 2014, Statement Regarding Reverse Repurchase Agreements, the Open Market Trading Desk at the Federal Reserve Bank of New York has been conducting daily overnight reverse repo (ON RRP) operations as part of an operational readiness exercise and has recently been adjusting the offering rate of these operations on a periodic basis. Beginning with the operation to be conducted on Monday, December 1, the offering rate of ON RRP operations will be increased from seven basis points to ten basis points. As noted in the October 29 statement, the Desk plans to maintain the offering rate at ten basis points through the operation to be conducted on Friday, December 12. All other terms of the exercise will remain the same. As an operational readiness exercise, this work is a matter of prudent planning by the Federal Reserve. These operations do not represent a change in the stance of monetary policy and no inference should be drawn about the timing of any future change in the stance of monetary policy." The NY Fed's latest statistics on its Temporary Open Market Operations show the RRP program jumped on Friday, quarter-end, to $173.9 billion from $148.3 billion the prior day. This is below the $186.3 billion reached last month-end (Oct. 31) and far below the maximum $300 billion limit reached at quarter-end (Sept. 30) <b:>`_. In other news, the FT continues camping out on the negative Euro rates story with "Euro-denominated cash funds gain from negative bank rates." It says, "The increasing number of banks charging customers to deposit money has prompted investors to pour billions of euros into short-term funds in an effort to escape negative yields. Some of the biggest euro-denominated money market funds -- part of the E1tn money market industry in which companies and banks can deposit and borrow short-term cash -- saw assets increase 19.2 per cent in the three months to September to E85.6bn, according to Moody's."
