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Short-Term U.S. Rates Rise Post-Fed as Dealers Work on Year End

  • DTCC repurchase index reaches its highest level since 2009
  • Yields on Treasuries of all maturities climb amid auctions

A measure of U.S. short-term borrowing costs reached the highest level since 2009 as the Federal Reserve’s policy tightening combined with the typical bent of dealers to shore-up balance sheets at the end of the year.

Overnight rates for Treasuries in the market for general collateral finance repurchase agreements between dealers tracked by a Depository Trust & Clearing Corp. index reached Monday the highest since 2009, or as far back as the firm provides data. U.S. debt yields of all maturities were higher Tuesday before sale of $35 billion of five-year notes, following Monday’s sale of $26 billion of two-year securities.