Money MarketsFederal Reserve Bank of New YorkDaily

Overnight Reverse Repo Facility (ON-RRP)

What is Overnight Reverse Repo Facility (ON-RRP)?

The Federal Reserve ON-RRP facility lets eligible counterparties (mostly money market funds) park cash overnight with the Fed at the ON-RRP rate, taking Treasuries as collateral. Daily uptake measures excess short-end cash in the system.

Why it matters

High ON-RRP balances indicate excess reserves with nowhere productive to go; falling balances signal that the cash is being redeployed into T-bills or bank funding, an early signal of liquidity tightening.

How to read prints

When it rises

More excess cash being parked at the Fed; private demand for collateral weak.

When it falls

Cash leaving ON-RRP; private demand for collateral or bank funding improving.

Frequently asked

What is the ON-RRP facility?⌄
An overnight reverse repo facility operated by the Federal Reserve Bank of New York. Money funds and other counterparties lend cash to the Fed overnight, taking Treasuries as collateral, earning the ON-RRP rate.
Why does ON-RRP usage matter?⌄
It is a real-time gauge of excess short-end cash. Balances peaked at >USD 2.5 trillion in 2022-2023 and have steadily drained as money funds rotated into T-bills.
What does falling ON-RRP signal?⌄
Liquidity tightening at the margin. Once ON-RRP nears zero, further QT or T-bill issuance drains bank reserves directly, which historically tightens financial conditions.
Who is eligible to use ON-RRP?⌄
~150 approved counterparties: money market funds, GSEs, primary dealers, and a small set of banks.

Track it on Market Ontology

Monitor Overnight Reverse Repo Facility (ON-RRP) in real time on Liquidity Regime, alongside regime classification, transmission mapping, and cross-asset context.

SourceFederal Reserve Bank of New York
FrequencyDaily
CategoryMoney Markets
FRED SeriesRRPONTSYD
UnitUSD billion
Related ModuleLiquidity Regime

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