NEW YORK, Sept 16 (Reuters) - What banks and Wall Street dealers pay for overnight cash in the repurchase agreement market surged on Monday to its most expensive levels since early 2019 as the cash for lending fell due to payments on corporate taxes and the supply of Treasuries.
The overnight rate in the repurchase agreement (repo) market jumped to 4.10% from 2.29% late on Friday. That was the highest level since the 6.5% recorded on Jan. 2.
Last week, the Treasury Department sold $78 billion in three-year, 10-year and 30-year debt securities, which are scheduled to settle on Monday.
Quarterly federal tax payments for U.S. companies are due on Monday. (Reporting by Richard Leong Editing by Paul Simao)