FED EXPECTED TO SET THREE-DAY REPURCHASE PACTS
The Federal Reserve is expected to
enter the U.S. Government securities market to add temporary
reserves directly by arranging three-day System repurchase
agreements, economists said.
    They said the Fed may add the reserves indirectly instead
via a large round, two billion dlrs or more, of customer
repurchase agreements.
    Federal funds, which averaged a high 6.35 pct on Friday,
opened at 6-7/16 pct and traded between there and 6-1/2 pct.
 Reuter
