Quarter-end expected to be quiet for Fed liquidity facilities

June 30 (Reuters) - The Federal Reserve's rebuild of money market liquidity is pointing to a quiet turn of the quarter, market participants say, as ample central bank cash depresses the volatility that often emerges around such calendar dates.

Heading ‌into the quarter-end, market participants do not see market pressure growing in a way that would point to a spasm of interest ‌rate volatility and a surge in use of central bank liquidity facilities.

What risks emerge from reducing bank liquidity requirements?

How does quarter-end affect money market conditions?

What are reserve management purchases and their purpose?

Why is the Fed's balance sheet size controversial?

"I expect normal turn-of-the-quarter pressures but nothing disruptive," said Lou Crandall, chief economist with research firm Wrightson ICAP.

On Monday, ​there was no borrowing via the Fed's standing repo operations and reverse repo inflows were marginal, as they have been for some time, in a sign that Tuesday's trading is fixing to be calm.

The month-end often brings short-lived bouts of money market churn as some market participants pull back, which can then pressure rates upward and drive various market playe

Fuente original: Yahoo Finance (https://finance.yahoo.com/news/quarter-end-expected-quiet-fed-100824935.html)