Repurchase Agreement (Repo) Program

Overview

Treasury will invest excess operating cash through reverse repurchase transactions (repos). The Repo Program is an investment opportunity offered to Treasury Tax and Loan (TT&L) depositaries and is designed to supplement existing investment alternatives available through the Treasury Investment Program. The program is operated by Treasury based on its legal authority codified at Title 31 U.S.C. Section 323.

In March 2006, Treasury began to invest excess funds through reverse repos as part of a one year pilot program. During the pilot Treasury invested an average of $2.7 billion daily.

Program Characteristics

• Repo investments will typically occur daily at approximately 9:15 a.m. ET.
  
  
• Repo investments are generally limited to overnight investments.
  
  
• Treasury estimates the daily offering amount will usually be within a range of $500 million to $6 billion.
  
  
• The Federal Reserve Bank of St. Louis administers the Repo Program as Fiscal Agent for the Treasury.
  
  

Securities

• An updated list of securities acceptable for the Repo Program and their assigned margins may be found at Treasury's Bureau of the Public Debt's web site at Acceptable Securities for Treasury's Repurchase Agreement (Repo) Program and the Assigned Margins for Valuation 

Operations

• To see a flow chart of the Treasury Repo Investment process, flow chart

TT&L depositaries interested in becoming participants in the Repo Program should contact:

Director of the Investment Management Division: Thompson Sawyer
Phone: (202) 874-7150
E-mail: Thompson.Sawyer@fms.treas.gov