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To: AllansAlias who wrote (40597)5/29/2002 12:31:07 PM
From: GraceZ  Respond to of 209892
 
Well its not a total mistake to look at the total because the RPs sort of have a "float" value. Its just that the banks don't create loans based on the RP float, but the permanent creation. The RPs are basically the Fed trying to hold their target interest rate. Notice last week we had the rate falling below target so the Fed did some matched sales to reduce the RP float.