Dash for Cash by Banks Fuels Signs of Tension in Funding Markets
- Repo rates moved higher Wednesday as CS worries reverberated
- Federal Home Loan Banks have been raising cash for members
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There are some signs of increased pressure within US dollar funding markets as fears grow around the outlook for the banks and the turmoil drives lenders to shore up their own cash buffers.
With global financial markets reeling in the wake of Silicon Valley Bank’s bank-run-fueled failure last week, worries about the future of Credit Suisse Group AG have amped up global concern. That sent short-end debt-market rates plummeting again Wednesday as investors radically shifted their outlook for central bank policy and flocked to haven assets.