FED EXPECTED TO ARRANGE SYSTEM REPURCHASES
  The Federal Reserve is likely to add
  temporary reserves to the banking system this morning by
  executing system repurchase agreements, economists said.
      The Fed faces a need to add a large volume of reserves this
  statement period to offset a drain caused by rising Treasury
  balances at the Fed after the June 15 tax date.
      Most economists are predicting over-the-weekend system
  repurchases. But some, who see a smaller adding requirement,
  are forecasting a less aggressive combination of three- and
  six-day repos. Fed funds were trading at 6-3/4 pct, close to
  yesterday's 6.81 pct average.
  

