Source: Federal Reserve Bank of New York
Release: Temporary Open Market Operations
The award rate is the rate given to all accepted propositions for the collateral type reported by the New York Fed as part of the Temporary Open Market Operations.
Temporary open market operations involve short-term repurchase and reverse repurchase agreements that are designed to temporarily add or drain reserves available to the banking system and influence day-to-day trading in the federal funds market.
A reverse repurchase agreement (known as reverse repo or RRP) is a transaction in which the New York Fed under the authorization and direction of the Federal Open Market Committee sells a security to an eligible counterparty with an agreement to repurchase that same security at a specified price at a specific time in the future. For these transactions, eligible securities are U.S. Treasury instruments.
See FAQs for more information.
Federal Reserve Bank of New York, Overnight Reverse Repurchase Agreements Award Rate: Treasury Securities Sold by the Federal Reserve in the Temporary Open Market Operations [RRPONTSYAWARD], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/RRPONTSYAWARD, December 1, 2023.
Release: Interest Rate on Reserve Balances
Starting July 29, 2021, the interest rate on excess reserves (IOER) and the interest rate on required reserves (IORR) were replaced with a single rate, the interest rate on reserve balances (IORB). See the source's announcement for more details.
The interest rate on reserve balances (IORB rate) is the rate of interest that the Federal Reserve pays on balances maintained by or on behalf of eligible institutions in master accounts at Federal Reserve Banks. The interest rate is set by the Board of Governors, and it is an important tool of monetary policy.
See Policy Tools and the IORB FAQs for more information.
Board of Governors of the Federal Reserve System (US), Interest Rate on Reserve Balances [IORB], retrieved from FRED, Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/series/IORB, December 1, 2023.