### Comment:
1 - I don’t understand how the repo market impacts the effective fed fund rate?  
  
 2 - USRG1T on Bloomberg - is the repo rate one single rate? Meaning to do all participates lend/borrow at that particular rate?  
  
 3 - Does the central bank regularly participate in the repo market outside of what went on last week? I would have assumed the central bank let’s big banks etc to borrow from them using repo?  
  
 Many thanks!!

### REPLY:
Banks can deplay extra funds in either fed funds or repo. If rate in repo is higher, they would lend in the repo market instead, reducing supply in FFs.  
  
 USRG1T is the weighted average i believe of all transactions that day. The rate ranges throughout the day and by counterparty.  
  
 Central banks used to conduct these operations regularly when the fed balance sheet was smaller

### END.