Wells Fargo Securities Strategist Garret Sloan writes in yesterday's, "Daily Short Stuff," "Month-end was relatively benign in terms of overnight lending markets. The Fed reverse repo facility saw just under $140 billion, while the inter-dealer repo market (GCF) saw Treasuries jump to the low 20 bps range on higher than normal volume the last day of the month. Treasury overnight GC volume jumped to $137 billion, up from $84 billion the day after Thanksgiving. Mortgages jumped even higher, touching just below 30 bps on Nov. 30th, again on slightly higher volume. This month-end the repo markets approached the calendar turn somewhat differently than October month-end, which likely has something to do with the holiday schedule. Overnight repo rates began climbing in the GCF market starting on the Tuesday before Thanksgiving and climbed every day through month-end.... In the triparty market, the price action was similar, though more muted. The MBS triparty repo index hit 12.8 basis points at month-end, up from 6 basis points prior to the Thanksgiving break. Agencies climbed from 5.7 basis points to 11.2 basis points and Treasuries climbed from 4.9 basis points to 8 basis points.... This morning GCF Treasury repo opened at 10.6 basis points, down from yesterday's average Treasury GCF rate of just over 18 basis points <b:>`_." In other news, the latest Independent Adviser for Vanguard Investors newsletter comments on rising money market fund yields. Editor Dan Wiener writes, "Money market yields continue to stir. Admiral Treasury Money Market picked itself up off the mat to score a 0.02% SEC yield on November 9 -- the first time it's been over 0.01% since January 11, 2013. It ended the month at 0.05%. But Vanguard's tax-exempt money funds all remain anchored just above zero." (Note: A number of Institutional money market funds now yield 0.20%, the first time we've seen these levels since the end of 2012. Watch for more yield coverage in the upcoming December issue of Money Fund Intelligence.)
