reformedbanker - 11/5/2025 11:56

Borrow vs sell decision could be influenced by many things. An ag bank might see seasonal loan demand increase before year end, then see loans drop in Jan when farmer deferred payments come in. Some banks in DC are probably ly seeing deposit account balances fall as Fed employees are not getting paychecks. If the individual bank sees the change as short term (or Ditt pointed out, doesn't want to realize a security gain / loss) they chose to borrow.