Fed's Oct. 20 Overnight Repos Accept $0 Amid $1.8 Billion Claim

The Federal Reserve's two overnight repo operations accepted $0 Tuesday, offering no support in those results for a $1.8 billion injection claim cast as bullish for Bitcoin (BTC).

The Oct. 20 claim asserted that the Fed had put more than $1.8 billion into the economy that day. Its written text did not identify a transaction behind the figure. The repo results establish what happened in those operations, but cannot settle whether a different Fed transaction or balance sheet change accounts for the claim.

The Fed conducted a separate $67 million small value repo exercise on Oct. 20. It was scheduled to settle Wednesday, Oct. 21. That exercise was distinct from the two overnight operations, which accepted no funds.

The Fed also plans about $14.6 billion in Treasury reinvestment purchases from Oct. 15 through Nov. 13. Reinvestment uses payments from existing holdings to buy Treasury securities and is separate from overnight repo funding. No reserve management purchases are planned for that period. The $14.6 billion is a plan spanning several weeks, not an Oct. 20 repo result.