Demand for Federal Reserve liquidity support from investment banks and other primary dealers has fallen in recent days, the US central bank revealed yesterday, indicating that financial pressures on these institutions are easing.

Direct borrowing from its new primary dealer credit facility fell $8bn from $34bn (£17bn) to $26bn in the week to April 9, the Fed said. Meanwhile, the central bank also said that its latest swap auction of Treasury securities was undersubscribed.