By Michael S. Derby 

The Federal Reserve Bank of New York injected $30.65 billion in temporary liquidity into financial markets Thursday.

The intervention came via a term repurchase agreement operation that will last for 15 days. The operation saw eligible banks take less than the $35 billion the Fed was willing to make available.

The repo operation took in $18.15 billion in Treasurys and $12.5 billion in mortgages. It will expire on Nov. 1.

Fed repo interventions take in Treasury and mortgage securities from eligible banks in what is effectively a loan of central bank cash, collateralized by dealer-owned bonds. Last month, the Fed ramped up its repo operations for the first time in over a decade to help tame spiking short-term borrowing costs.

On Wednesday, the Fed also began buying large amounts of Treasury bills to help expand the size of its balance sheet as part of a longer-term solution for money market volatility.

Write to Michael S. Derby at michael.derby@wsj.com

(END) Dow Jones Newswires

October 17, 2019 09:40 ET (13:40 GMT)