Fed accepts $105.1B at 0.25% in first reverse repo operation

Results of the first short-term repurchase and reverse repurchase agreement:

The Fed had removed the cap on the $300 billion yesterday and there were fears they would need to take on a huge amount but the $105.1B is relatively small.

The Fed has been working on these operations for awhile. There were 49 counterparties compared to 47 over the 8 day average, according to MNI. The 8-day average for repos was $88 billion.

The worry is that the Fed can't raise rates. The 0.25% rate is at the lower bound of the Fed's new 0.25% to 0.50% range so that's not the greatest sign. At 8 am ET on Friday, the first post-hike Fed funds effective rate is announced. That's the big event tomorrow.