FED EXPECTED TO ADD RESERVES IN MONEY MARKET
The Federal Reserve is expected to
enter the U.S. Government securities market to add temporary
reserves indirectly via 1.5 billion dlrs or more of customer
repurchase agreements, economists said.
    They said the below-six pct Federal funds rate suggests the
Fed does not have a large reserve adding need. However, some
dealers reportedly backed out of the three-day System
repurchase agreements set on Monday, leaving the Fed with a
somewhat increased need to supply reserves.
    Federal funds, which averaged 6.05 pct yesterday, opened at
5-15/16 pct and remained there in early trading.
 Reuter
