STOCKS | U.S. Funding Costs May Stay Elevated Into Early September, Wells Fargo Says

According to Wallstreetcn, the final trading day of August overnight repurchase agreements ended a period of stable funding conditions, even as heavy supply of short-term U.S. Treasury bills has been entering the market since last month. Wells Fargo strategists said the trend may continue into the first half of September, until before the tax deadline, after funding costs had stayed low because of insufficient supply, abundant cash in the market, and the availability of dealer intermediation before the Treasury began increasing short-term bill issuance in July.