The US Treasury building in Washington. A key interest rate for the US financial system jumped to the highest level this year — exceeding the Federal Reserve’s target range — amid dwindling liquidity exacerbated by Treasury auction settlements and a quarterly corporate tax payment date. The Secured Overnight Financing Rate — a one-day lending benchmark linked to activity in the market for repurchase agreements — rose to 4.51% as of Sept. 15 from 4.42% the prior session, according to the latest Federal Re ...

By Gertrude Chavez-Dreyfuss NEW YORK (Reuters) -U.S. banks borrowed $1.5 billion from the Federal Reserve's Standing Repo Facility on Monday, the deadline for quarterly corporate tax payments, Fed data showed, suggesting some tightness in meeting funding obligations. The SRF serves as a backstop for any potential funding shortage. Launched in July 2021 in the aftermath of the Covid-19 pandemic, the Fed's SRF offers daily overnight cash twice a day in exchange for eligible collateral like Treasuries. The ...