The repurchase market is tight, and investors are flocking into Fed interest rate futures.

According to ChainCatcher news and Jin10 reports, as the short-term financing market faces tight risks at the end of the quarter, investors are flooding into futures linked to the Fed's benchmark overnight interest rate at a record pace. Data shows that the trading volume of federal fund futures for the September contract is nearing 500,000, surpassing the record set on April 3. Some market participants are concerned that a decrease in reserves could trigger a surge in financing pressure at the end of the month, with traders cutting back on repurchase activities to meet regulatory requirements, thereby raising financing costs. Traders expect the effective interest rate to rise to 4.1% before the end of the month.