Macro glossary
Overnight Reverse Repo (ON RRP)
The Fed facility that lets eligible counterparties lend cash overnight to the Fed in exchange for Treasury collateral.
Definition
ON RRP balances peaked above $2.5 trillion in 2022 and subsequently drained toward zero as the Treasury issued bills to absorb the cash. A fully drained RRP is the first leg of true quantitative tightening hitting bank reserves.