Market Extra: Fed opens overnight repo spigot as Wall Street stares down barrel of U.S. debt-ceiling fight

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A much bigger overnight parking spot for Wall Street cash is about to open up, as market participants wait for the U.S. debt-ceiling clash to play out.

Starting Thursday, banks, money-market funds and other financial firms can park up to $160 billion overnight each at the Federal Reserve Bank in New York’s reverse repurchase program (RRP), double what was allowed under the earlier cap.

“Investors,…