Fed Overnight Reverse Repo (ON RRP)

In a Fed reverse repo, an eligible counterparty provides cash and receives a security, with an agreement that the Fed will buy the security back. The overnight facility reverses that transaction the following day. From the Fed's perspective, an ordinary repo runs in the other direction and supplies cash against securities.

The figure on this page is accepted cash at the regular overnight operation against Treasury collateral. It excludes term operations and small value exercises. It is an amount outstanding for that operation, rather than cumulative cash supplied during the year. The Fed describes the transaction on its ON RRP policy page. Keep the stock of cash in the facility separate from the interest rate offered on that cash. Either can change while the other stays broadly stable, and a low balance alone does not describe every source of money-market funding.

The latest operation awarded 3.75% on Oct 21, 2026. This rate is fetched from the New York Fed's operation results alongside accepted cash and counterparties, so it follows the data rather than a fixed number in this article. It is the award rate for that observation.

ON RRP is a tool for supporting the lower end of overnight money-market rates by offering eligible institutions an alternative place to invest cash. It does not force every market transaction to clear at exactly the same rate. Participation depends on eligibility and on the alternatives available to each counterparty. Use the New York Fed operation results to inspect a specific operation. A change in the posted award rate is a different event from a change in facility usage; the table reports both separately.

The chart records how much cash eligible counterparties placed in the regular operation, including the high point and the subsequent decline. Falling usage means less cash was accepted by this particular facility. It does not by itself identify where each dollar went or establish a corresponding increase in bank reserves.

To investigate the decline, compare the facility's rate with alternative overnight investments and Treasury bills, then check the other Fed liabilities and Treasury cash balances for the same dates. Timing matters because a daily operation can move before the next weekly reserve observation becomes available. The official operation record provides the amounts, rather than an attribution of participants' motives. TFTC's discussion of QT and reverse repo provides further context. The history here remains a record of usage, with term transactions and tests excluded consistently.