Bank of America: Quarterly repurchase pressure in the US financial market will be higher than mid-month.

Bank of America strategists Mark Cabana and Katie Craig said in a report that the pressure in the US funding market at the end of September may be greater than the volatility seen this week, due to regulatory constraints and strong coupon settlements on the last day of the month. The tax deadline in September pushed overnight funding rates up by 12 basis points in the three trading days prior to September 15. They wrote, "However, surprisingly, funding quickly reversed course the next day, completely undoing the previous 12 basis points increase."