The last trading day of the August overnight repurchase agreement brought an end to a period of stable funding, even though a large supply of short-term US Treasury notes has begun to pour into the market since last month. Wells Fargo strategists say this trend is likely to continue until the first half of September until the tax deadline. Until the Ministry of Finance began increasing the issuance of short-term notes in July, financing costs were low due to insufficient supply, large cash flows in the market, and the availability of intermediary services for traders.

The last trading day of the August overnight repurchase agreement brought an end to a period of stable funding, even though a large supply of short-term US Treasury notes has begun to pour into the market since last month. Wells Fargo strategists say this trend is likely to continue until the first half of September until the tax deadline. Until the Ministry of Finance began increasing the issuance of short-term notes in July, financing costs were low due to insufficient supply, large cash flows in the market, and the availability of intermediary services for traders.