[Tightening Signals Emerge in the Repo Market, Investors Flock to Fed Rate Futures] Odaily Planet Daily News – As the short-term funding market faces risks of tightening at the quarter-end, investors are pouring into futures tied to the Federal Reserve's benchmark overnight rate at a record pace. Data shows that the trading volume of the September contract for federal funds futures, used to bet on the trajectory of the Fed's benchmark overnight rate, has approached 500,000 contracts, surpassing the first universal contract record set on April 3—when Trump announced large-scale tariff policies, triggering market turbulence. Some market participants are concerned that declining reserves could lead to a surge in funding pressures during month-end and quarter-end periods, as dealers cut back on repo operations and strengthen their balance sheets to meet regulatory requirements, thereby driving up funding costs. With traders anticipating that the effective rate could rise to 4.10% before the month-end, selling pressure intensified again during the U.S. morning trading session.