Overnight borrowing rates firmed notably around month end (which was also year end for Canadian banks), moving well above the Fed's rate for IOR. Standing repo facility usage also increased meaningfully around month end to a new high of 50 billion, but fell to zero on Tuesday, and repo rates have moved lower. Lorie Logan in her speech last week said she would be paying especially close attention to the spread between the TGCR repo rate and IOR. "In an efficient system, market rates should be close to, but perhaps slightly below, interest on reserves on average over time." More from Logan: "I currently view the average spread of TGCR to IORB as the central, though certainly not only, indicator of how reserve supply needs to evolve." The TGCR-IOR spread narrowed to +8 bps on Friday from +25 bps on Friday. It has not been below IOR since Oct. 20.(Nick Timiraos)