Fed buying, record repo facility use steady year-end US funding markets

Core Viewpoint - U.S. short-term funding markets experienced typical year-end tension, but the Federal Reserve's actions helped maintain liquidity and prevent a significant squeeze [1] Group 1: Market Conditions - The Federal Reserve renewed its buying of short-term government debt to support liquidity in the funding markets [1] - Heavy utilization of the Standing Repo Facility by the Federal Reserve contributed to the flow of cash in the markets [1] Group 2: Impact on Liquidity - Market participants noted that the Federal Reserve's interventions were effective in preventing a larger liquidity squeeze during the year-end period [1]