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