Demand for one-month Fed money soars

The results of the latest of the Fed's Term Auction Facility operations signals the extent to which US banks are becoming ever more reluctant to lend to their counterparts.

Banks on Tuesday had to pay at least 3.75%, 175 basis points above the federal funds rate, to secure some of the $75 billion in month-long loans that the Fed had on offer.

The stop-out rate, the lowest cost at which funds are awarded, for the last Term Auction Facility, which took place on 9 September and which offered just

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