Over the past two years, U.S. repo rates have risen modestly around quarter‑ends, a pattern that has intensified since the collapse of Silicon Valley Bank. In March 2023, the Secured Overnight Financing Rate (SOFR) climbed 7 basis points above the Overnight Reverse Repurchase (ON RRP) rate, and in September and year‑end periods the spread widened to about 25 basis points. Analysts note that dealers often scale back triparty repo activity at these dates, shifting borrowing into centrally cleared markets and increasing the cost of intermediation. The resulting wider spread is seen as an indicator of tightening liquidity in the repo market and a potential sign that Fed reserves are becoming less abundant.
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https://www.federalreserve.gov/econres/notes/feds-notes/what-happens-on-quarter-ends-in-the-repo-market-20250606.html
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