The Fed conducted its first auction of funds through its new term deposit facility on Monday, as described here. Recall that the term deposit facility allows banks with reserve accounts to effectively tie up reserve funds in an account that cannot be used in intraday transactions and cannot count towards overnight reserve requirements. The idea, as I have discussed before (though I couldn't find the relevant blog piece) is that this promotes inflation control by somehow tying up reserves so that they cannot "escape." I have also argued that this is misguided - the Fed can achieve all the inflation control it needs, and at lower cost, by setting the interest rate on reserves appropriately.
Now, what happened in the auction? $2 billion in 28-day term deposits were offered, and an amount greater than $11 billion was the amount tendered. I have no idea how an auction like this might go, but this looks like healthy demand, though of course you would have to see all the prices that were associated with the $11 billion quantity to determine that. The "stop out rate" was 0.27%, which is the lowest accepted bid rate. Since the interest rate on reserves is currently 0.25%, the Fed does not have to pay much of a premium to get a bank to commit to locking up reserves for 28 days. Of course this is due to the fact that there is a huge quantity of reserves in the system, so a marginal unit of reserves has close to zero value in making intraday transactions or in satisfying reserve requirements. Thus, these term deposits are not costing the Fed much more than liquid reserves, though presumably it costs something to run the auction. One would expect though, that as the quantity of reserves falls, the margin between the term deposit rate and the interest rate on reserves will rise.
Correction: This was not the first auction. That was actually in mid-June. See this.