{"id":57575,"date":"2026-01-02T14:38:18","date_gmt":"2026-01-02T18:38:18","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/fed-reverse-repo-sees-minimal-demand-as-commercial-paper-outstanding-declines-sharply\/57575\/"},"modified":"2026-01-02T14:38:18","modified_gmt":"2026-01-02T18:38:18","slug":"fed-reverse-repo-sees-minimal-demand-as-commercial-paper-outstanding-declines-sharply","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/fed-reverse-repo-sees-minimal-demand-as-commercial-paper-outstanding-declines-sharply\/57575\/","title":{"rendered":"Fed Reverse Repo Sees Minimal Demand as Commercial Paper Outstanding Declines Sharply"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li>The Federal Reserve&#39;s overnight reverse repurchase agreement (ON RRP) facility saw <em>extremely low demand<\/em> on January 2, with only <strong>$5.667 billion<\/strong> accepted from <strong>seven counterparties<\/strong>.<\/li>\n<li>Total U.S. commercial paper outstanding experienced a significant contraction in the week ending December 31, falling by <strong>$45 billion<\/strong> on a non-seasonally adjusted basis and <strong>$42.9 billion<\/strong> when seasonally adjusted.<\/li>\n<li>Despite the overall decline, non-seasonally adjusted foreign financial commercial paper outstanding registered a slight increase of <strong>$0.1 billion<\/strong> in the same period.<\/li>\n<\/ul>\n<p>The Federal Reserve&#39;s overnight reverse repurchase agreement (ON RRP) facility witnessed minimal engagement on January 2, with only <strong>$5.667 billion<\/strong> in propositions accepted from <strong>seven counterparties<\/strong>. This figure represents the total amount submitted to the facility, indicating a complete acceptance of the limited demand. The low usage of the RRP facility suggests ample liquidity within the financial system, reducing the need for counterparties to park excess cash with the Fed.<\/p>\n<p>Meanwhile, the broader U.S. commercial paper market experienced a notable contraction in the week ending December 31. Total commercial paper outstanding, on a non-seasonally adjusted basis, fell by <strong>$45 billion<\/strong>. When adjusted for seasonal factors, the decline was still substantial, with outstanding commercial paper decreasing by <strong>$42.9 billion<\/strong>.<\/p>\n<p>In a contrasting development within the commercial paper sector, non-seasonally adjusted foreign financial commercial paper outstanding saw a modest increase. This segment rose by <strong>$0.1 billion<\/strong> during the same week ending December 31. This slight uptick in foreign financial commercial paper comes amidst a broader downturn in the overall commercial paper market.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways The Federal Reserve&#39;s overnight reverse repurchase agreement (ON RRP) facility saw extremely low demand on January 2, with 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