Bindseil, Ulrich; Nyborg, Kjell G; Strebulaev, Ilya - C.E.P.R. Discussion Papers - 2004
Repo auctions are multiunit auctions regularly used by central banks to inject liquidity into the banking sector. Banks … have a fundamental need to participate because they have to satisfy reserve requirements. Superficially, repo auctions … resemble treasury auctions; the format and rules are similar and there is an active secondary market for the underlying asset …