Treasury dealers’ net holdings of bills reached a two-year high, according to the Federal Home Loan Bank of New York’s October 23 update. The SOFR stood at 3.9% on October 22, while the bank flagged pressures linked to Canadian bank year-end on October 30 and cash leaving repurchase agreements. Money market funds have shortened their portfolios and shifted some cash into repurchase agreements, keeping overnight funding conditions relatively stable despite dealers’ substantial bill inventories. Coinbase Institutional separately reported rebuilding Bitcoin leverage, with perpetual funding rising from 0.1% annualized on October 13 to 7.2% one week later, but no evidence yet links intermediary constraints to tighter financing conditions in cryptocurrency markets.
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