By Owain Johnson
At a Glance
- As corporations look to meet quarterly tax payments, the Fed looks to inject money into the system for first time since the 2008 crisis.
- Trading in SOFR futures nears all-time records in response to rate volatility.
Cash has drained from the financial system in recent days as corporations have withdrawn deposits from banks or money-market funds in order to meet their quarterly tax payments.
At the same time, the settlement of mid-month U.S. Treasury coupon auctions means there's more collateral in the repo market. The increases in both demand