Money markets are generally on hold ahead of the FOMC results Wednesday
Money markets are generally on hold ahead of the FOMC results Wednesday, and following some tax date and settlement related pressures from last Friday. Of course the effective funds rate remains steady at 2.40%, and will do so after tomorrow's FOMC decision with no policy change expected. Overnight general collateral remains firmer in the 2.55% region thanks in part to today's settlement of $95 B in in 4- and 8-week bills for $15 B in new cash. There could be some spillover from quarter-end pressures as well. BGCR and SOFR eased off Monday, dipping to 2.38% and 2.41%, respectively, from 2.43% and 2.46% on Friday. 3-month Libor dipped to 2.5128% versus 2.6326% yesterday, while overnight Libor edged up to 2.3901% from 2.3896%.