FED EXPECTED TO SUPPLY TEMPORARY RESERVES
The Federal Reserve is expected to
enter the U.S. government securities market to add temporary
reserves, economists said.
    They said the Fed probably will add the reserves indirectly
by arranging around two billion dlrs of customer repurchase
agreements. A direct reserve supply through System repurchase
agreements is possible instead.
    Federal funds, which averaged 6.33 pct yesterday, opened at
6-3/4 pct and traded between there and 6-3/8 pct. End of
quarter demand pressures are pushing up the funds rate.
 Reuter
