What is US Overnight Reverse Repurchase (ON RRP) Agreements Award Rate)?

The US Overnight Reverse Repurchase (ON RRP) Agreements Award Rate is the interest paid by Fed Reserve Banks to Federal Funds Market participants for overnight repurchase contracts on Treasury Securities. It is reviewed and published every 6 weeks by the Federal Open Market Committee (FOMC).

The ON RRP rate is lower than the IORB rate. Because not all Federal Funds Market participants are eligible to deposit money on Feb Reserve accounts to earn the higher IOBR rate. So they have to use the Federal Funds Market to buy Treasury Securities with overnight repurchase contracts to earn the lower ON RRP rate.

If you go to this the Federal Reserve Bank of New York Website, you will see the latest US ON RRP rate of 4.25% as of January 27, 2025.

The ON RRP rate is slightly higher than or equal to the lower end of the Fed Funds Rate range. See the historical rates below:

ON RRP       Funds
 Rate      Rate Rang     Publish Date
------   -------------   ------------
4.25%    4.25% - 4.50%   19-Dec-2024
4.55%    4.50% - 4.75%   08-Nov-2024
4.80%    4.75% - 5.00%   19-Sep-2024

⇒ Historical Values of ON RRP Rates

⇐ Historical Values of IORB Rates

⇑ Introduction to US Interest Rates

⇑⇑ Interest Rates