Overnight Repurchase Rates Rise as Debt-Limit Deadline Nears
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Rates for borrowing and lending securities in the repurchase-agreement market increased to the highest level in five months amid the government stalemate over raising the nation’s debt ceiling.
The average level of overnight general collateral repo rates traded through ICAP Plc was 0.20 percent at 10 a.m. in New York, when most trading takes place, the highest since Feb. 2. The rate dropped to 0.001 percent on July 20. Rates averaged 0.05 percent the past three months and 0.15 percent in the last year, according to ICAP, the world’s largest inter-dealer broker.