The Fed's RRP

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Repo = Security providers eg banks lend cash to the RBA, RBA lends bonds in return.

Reverse-repo = RBA lends cash to security providers eg banks, banks lend bonds to RBA in return.

Repurchase agreements (repos) are a financing instrument widely used by holders of debt securities and play an important role in assisting the smooth functioning of debt markets. Although akin to secured financing, repo rates have recently tended to trade above those on unsecured borrowings. This article outlines the structure of the Australian repo market and considers recent trends in the pricing of repos relative to other short-term interest rates.

For anyone interested in reading about the repo market in Australia, see:

https://www.rba.gov.au/publications/bulletin/2010/dec/pdf/bu-1210-4.pdf

 

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^ security providers are posting collateral at the RBA in the form of cash balances or bonds, it depends which direction the repurchase agreement is going. The bonds could be issued by Federal, State government or corporate entities, and mortgage backed securities (MBS) etc.

See: https://www.rba.gov.au/mkt-operations/resources/tech-notes/eligible-securities.html for a list of eligible securities.

 

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Overnight Reverse Repurchase Agreements: Treasury Securities Sold by the Federal Reserve in the Temporary Open Market Operations.

RRP (blue line) v BTC price (red):

 

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RRP (blue line) v Gold price (red):