U.S. repo rate spikes at quarter-end

NEW YORK (Reuters) – The interest rate on U.S. overnight repurchase agreements jumped on Monday as banks and Wall Street are scrambling to fund their loans and trades at the end of the third quarter and before the Federal Reserve’s operation to offer cash into banking system.

In early U.S. trading, overnight repo rates were quoted at 2.50%-2.80%, compared with 1.90% late on Friday, according to ICAP.