FED EXPECTED TO ADD RESERVES VIA CUSTOMER RPS
The Federal Reserve is expected to enter
the government securities market to add reserves via customer
repurchase agreements, economists said.
    They expected the amount to total around 1.5 billion to two
billion dlrs.
    Economists added that the low rate on federal funds
indicates the Fed is unlikely to add funds agressively through
overnight system repurchases, unless it feels the need to calm
volatile financial markets.
    Federal funds were trading at 7-1/8 pct, down from
yesterday's average of 7.61 pct.
 Reuter
