A Fed report released Thursday said commercial banks averaged $18.47 billion in daily borrowing over the past week. That compared with a daily average of $17.51 billion in the previous week.
For the week ending Aug. 27, Wall Street firms didn't take out any loans, the fourth straight period of no action. Their borrowing, however, averaged as high as $38.1 billion a day over the course of a week in early April.
Separately, as part of efforts to relieve credit strains, the Fed auctioned nearly $26.65 billion in Treasury securities to investment companies Thursday. The Fed was making $50 billion worth of the securities available.
In exchange for the 28-day loans of Treasury securities, bidding companies can put up as collateral more risky investments. These include certain mortgage-backed securities and bonds secured by federally guaranteed student loans.
The auction program, which began March 27, is intended to make investment companies more inclined to lend to each other. A second goal is providing relief to the distressed market for mortgage-linked securities and for student loans.
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