On Nov. 24, 2008, the Federal Reserve conducted an auction of $150 billion in 13-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. 23, 2008. Following are the results of the auction: Stop-out rate: 0.380 percent Total propositions submitted: $31.075 billion Total propositions accepted: $31.075 billion Bid/cover ratio: 0.21 Number of bidders: 16 The awarded loans will mature on January 5, 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. 25, 2008. Participants have until 12:30 p.m. EST on Nov. 25, 2008, to inform their local Reserve Bank of any error.
