The Federal Reserve just ran a $30 million overnight reverse repurchase agreement operation with six counterparties. To put that number in perspective, this facility once absorbed over $2 trillion in cash on a daily basis.
Overall ON RRP balances have cratered to approximately $100 million as of mid-July 2026. That’s a decline of roughly 99.99% from the peaks seen during the 2020-2023 era.
What the reverse repo facility actually does
The Fed’s overnight reverse repo facility is essentially a parking lot for cash. Money market funds, banks, and other eligible counterparties lend money to the Fed overnight and receive Treasury securities as collateral. In return, they earn the ON RRP rate.
The facility launched in its current form around 2013 and became a juggernaut during the pandemic era, when the Fed was flooding markets with liquidity through quantitative easing. At its peak, the ON RRP was absorbing north of $2 trillion daily.
