Fed pumpe $19 bil to buy MBS

--The Federal Reserve added $35 billionin temporary funds to the banking system through the purchase ofsecurities including mortgage-backed debt to meet demand for cashamid a rout in bonds backed by home loans to riskier borrowers. --The New York Fed's actions lowered the Federal funds rate to 5.25 percent, matching the bank's benchmark overnight rate,according to ICAP Plc. The rate began trading today at 6 percent,the highest open since January 2001. Treasuries fell after theadditions, stocks rebounded and the dollar rose against the yen. --The Fed typically only accepts so-called agency mortgage-backed securities, such as those guaranteed by government-chartered Fannie Mae or Freddie Mac, rather than non-agency home-loan bonds from other financial institutions. Issuance and trading of non-agency bonds, including securities backed bysubprime mortgages, has ground to a near-halt the past month. --Fed funds, the U.S. overnight interbank lending rate, closedat 4 15/16 percent yesterday, after trading between 4 3/4 percentand 5 3/4 percent, and averaging 5.38 percent, according to ICAPPlc, the world's largest inter-dealer broker. --In repos, the Fed buys U.S. Treasury, mortgage-backed andso-called agency debt from its 21 primary dealers for a setperiod, temporarily raising the amount of money available in thebanking system. At maturity, the securities are returned to thedealers, and the cash to the Fed. --The Fed's benchmark was 6 percent the last time fed fundsopened at today's level. On average, the Fed has added about $9billion in temporary funds daily this year through yesterday. --In the week after the Sept. 11, 2001, terror attacks, theFed added a daily average of $75.3 billion in reserves throughrepos. The record was $81.25 billion on Sept. 14, 2001. --Fed Fund Effective rate