May 11, 2020 / 2:41 PM / 18 days ago

Federal Reserve unveils pricing for Municipal Liquidity Facility

WASHINGTON, May 11 (Reuters) - The Federal Reserve on Monday announced pricing for its Municipal Liquidity Facility, the $500 billion borrowing program for states and local governments hurt by the coronavirus outbreak, in an updated term sheet.

The central bank said pricing for federal income tax-exempt notes will be at a fixed interest rate based on the comparable maturity overnight index swap rate, plus a spread based on credit rating.

For non federal income tax-exempt notes, pricing will be determined by the tax-exempt rate divided by 0.65.

For full details, see here:

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Reporting by Lindsay Dunsmuir and Howard Schneider; Editing by Chizu Nomiyama

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