Fed to undertake $25 bln 28-day TSLF auction Thursday

NEW YORK, April 30 (Reuters) - The Federal Reserve will undertake a $25 billion Term Securities Lending Facility (TSLF) auction on Thursday, the New York Fed Web site announced on Wednesday.

The Fed will accept Schedule 1 collateral from primary dealers in exchange for Treasuries, with a maximum award of $5 billion.

Dealers can lend out the Treasuries in exchange for short-term cash loans in the $4.5 trillion U.S. repurchase market, to help shore up balance sheets that have been depleted by the credit crisis.

(Reporting by John Parry; Editing by Chizu Nomiyama)