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Repo Markets feel the pinch from Taxes and Debt Settlements
The U.S. money markets are once again in focus after U.S. financial institutions tapped the Federal Reserve’s Standing Repo Facility (SRF) for $1.5 billion. While the sum is modest, its use, particularly on a day marked by both quarterly corporate tax payments and a significant Treasury debt settlement, offers a revealing glimpse into the subtle but persistent liquidity pressures within the financial system. [...]