The repurchase market is tight, and investors are flocking to Federal Reserve interest rate futures

ChainCatcher news, according to Jinshi reports, as the short-term financing market faces tight risks at the end of the quarter, investors are flocking to futures linked to the Federal Reserve's benchmark overnight rate at a record pace. Data shows that the trading volume of September contracts for federal funds futures has approached 500,000, surpassing the record set on April 3. Some market participants are concerned that a reduction in reserves may trigger a surge in financing pressure at the end of the month, as dealers cut back on repurchase agreements to meet regulatory requirements, thereby driving up financing costs. Traders expect the effective rate may rise to 4.1% before the end of the month.