FED EXPECTED TO ADD RESERVES
The Federal Reserve will enter the
government securities market to supply reserves via either a
large round of customer repurchase agreements or by overnight
or possibly four-day system repurchases, economists said.
    They said the Fed has a fairly large add need and is likely
to face the most reserve dislocations early in the new
statement period started today as corporate tax payments swell
Treasury balances at the Fed.
    Fed funds hovered at 6-3/4 pct after averaging 6.80 pct
yesterday.
 Reuter
