The Federal Reserve’s continued push to remove liquidity from the financial system is bringing back volatility to year-end trading in the overnight funding markets for the first time in five years. Volatility in the market for overnight repurchase agreements is generally tame, but it has started to move, with repos trading first at 5.50% and then retreating to 5.36%-5.34% on Tuesday, according to Clear Street LLC. The last time the repo market moved at all around year-end was in 2018, when it spiked more than 3 percentage points to 6%. The move comes as the Secured Overnight Financing Rate rose to the highest level ... (full story)