Key interest rates linked to the USA overnight financing market are rising, despite the Federal Reserve adjusting several tools to control market volatility. According to data released by the New York Fed on Thursday, as of December 24, the secured overnight financing rate jumped from 4.31% to 4.40%. This aligns with the 4.40% reserve requirement ratio, indicating that year-end balance sheet tightness at Banks is starting to drive up overnight financing costs. The rise in interest rates comes at a crucial year-end juncture - Wall Street is watching for signs that financing market volatility has exceeded typical levels at month-end and quarter-end, while Banks are supporting their balance sheets by restricting repurchase activities for regulatory purposes. Last week, Federal Reserve officials lowered the overnight reverse repurchase (RRP) agreement tool rate by 5 basis points compared to the lower bound of the target range.