The cost of borrowing short-term Treasuries-backed funds has reached its highest level since 2019, with some market participants blaming dealers closing their balance sheets for the year.

The DTCC GCF Treasury Repo Index rose to 5.452%, the highest level since September 2019, when declining bank reserves drove overnight loan costs to 10%.

Many market participants blamed the surge on dealers closing their books for the year, forcing borrowers to pay extra for collateral.