Friday, March 5, 2010

Uptick in Effective Fed Funds Rate, Again

The effective Fed Funds rate ticked up another basis point, today. It closed the week at 0.17%.

See my comments, here, on the climb in recent days.

Funds rate data via Michael Dunton of Mt. McKinley Bank.

1 comment:

  1. Word on the Street is that FNM and FRE are using a significant part of their cash holdings to "buy out" delinquent mortgage loans from pools they insure. This move returns cash to investors and removes it from the Fed Funds market where FNM and FRE are a big supplier of funds at the lowest rates (since the Fed pays them no interest on their reserves).