Won't somebody, please, think of the FARPs? Or, more descriptively FARPs vs yields (chart via Barclays): That's the participation rate in the Fed's Fixed Rate Full-Allotment Reverse Repo being stifled over the past while. Shockingly, what may become the Fed's central policy tools is sensitive to market rates. Higher rates, say Barc, have limited the pick up in the test programme, which has a fixed rate of 1 basis point. Not the most touching of clown-show side-effects, but still... Related link: The greatest trick the Fed ever pulled... - FT Alphaville This entry was posted by David Keohane on Wednesday October 16th, 2013 09:32. Tagged with FARPs.