FED EXPECTED TO SET CUSTOMER REPURCHASES
The Federal Reserve is expected to
intervene in the government securities market to supply
temporary reserves indirectly via customer repurchase
agreements, economists said.
    Economists expect the Fed to execute 2.0-2.5 billion dlrs
of customer repos to offset pressures from the end of the
two-week bank reserve maintenance period today. Some also look
for a permanent reserve injection to offset seasonal pressures
via an outright purchase of bills or coupons this afternoon.
     The Federal funds rate opened at 6-3/8 pct and remained at
that level, up from yesterday's 6.17 pct average.
 Reuter
