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General TradingO
Overnight Reverse Repurchase Agreement Facility (ON RRP)
A Federal Reserve facility where eligible counterparties lend cash to the Fed overnight in exchange for Treasury securities, effectively setting a floor for short-term interest rates.
Example
“Usage of the ON RRP facility surged to $2.3 trillion as money market funds parked excess cash with the Fed, preferring its guaranteed overnight rate over low-yielding alternatives.”