BUSINESS
04/18/2008 05:12 am ET Updated May 25, 2011

Bank Demand For Federal Reserve Liquidity Support Falls

Demand for Federal Reserve liquidity support from investment banks and other primary dealers has fallen in recent days, the US central bank revealed on Thursday, indicating that financial pressures on these institutions are easing.

Direct borrowing from its new primary dealer credit facility fell from $34bn to $26bn in the week to April 9, the Fed said. Meanwhile, the central bank also said that its latest swap auction of Treasury securities was undersubscribed.

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