Overnight Secured Lending Rates Rise to 3.65% as U.S. Treasury Settlement and Quarterly Taxes Drain Cash

According to Federal Reserve data, overnight secured overnight financing rates (SOFR) rose to 3.65% on June 12, up from 3.60% the previous trading day, amid tightened market liquidity. The surge was driven by month-end U.S. Treasury coupon auction settlements and corporate quarterly tax payments.

Treasury settlements expected on Monday will net absorb approximately $79 billion in market funds, according to TreasuryDirect data. Overnight general collateral (GC) repurchase rates, as reported by ICAP, opened at 3.73%, 3.72%, and 3.71%, with bid-ask spreads of 3.70%-3.71%.