The Federal Reserve is expected to enter the U.S. government securities market to add temporary reserves economists said. They said it is likely to supply the reserves indirectly by arranging two to 2.5 billion dlrs of customer repurchase agreements. There is less chance of a direct reserve add instead via System repurchase agreements. Federal funds which averaged 6.21 pct yesterday opened at 6-3/8 pct and traded between there and 6-7/16 pct.
FED EXPECTED TO ADD RESERVES IN MONEY MARKET