HALISTER1: Repo Softness Reflects ‘Much More Cash’ in the Market: Wedbush

Repo Softness Reflects ‘Much More Cash’ in the Market: Wedbush

(Bloomberg) -- While GC repo rates tend to rise after the outflow of GSE cash from the market, money market reform has created an anomaly, as record assets in government funds help keep repo down, Wedbush Securities managing director Scott Skyrm says in note.
  • “There’s no reason to expect any fundamental change anytime soon”
    • “GSE cash left the market and rates are still soft. New Treasuries settled yesterday and rates are still soft. Cash moved out of the repo market, and, you guessed it, rates are still soft”
  • NOTE: O/N GC repo trading around 0.30/0.28, ICAP data show
  • Related story: GC Repo Remains Near RRP as Investors Lack Options for Month-End
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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Scott Skyrm (Wedbush Securities Inc)

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