On Nov. 10, 2008, the Federal Reserve conducted an auction of $150 billion in 17-day credit through its Term Auction Facility. This was a forward auction designed to provide term funding over year-end--the awarded loans will settle on Dec. 22, 2008. Following are the results of the auction: Stop-out rate: 0.528 percent Total propositions submitted: $12.629 billion Total propositions accepted: $12.629 billion Bid/cover ratio: 0.08 Number of bidders: 16 The awarded loans will mature on January 8, 2009. The stop-out rate shown above will apply to all awarded loans.
Institutions that submitted winning bids will be contacted by their respective Reserve Banks by 11:30 a.m. EST on Nov. 12, 2008. Participants have until 12:30 p.m. EST on Nov. 12, 2008, to inform their local Reserve Bank of any error.
