Banks’ “reporting” dates are known inflection points in the short-term funding markets and typically fall at the end of the month, quarter, and of course the year. But periodically, the 15th of the month is also a pressure point. Such was the case this past Monday when a short-term funding rate that had been hovering around 2.21% soared as high as 10%. The funding market succumbed to a trifecta of pressures: Payments on corporate taxes were due on 15 September, leading to high redemptions of more than $35 billion in money market funds. Cash balances increased by an additional $83 billion in the U.S. Treasury general ... (full story)