CME BrokerTec reports 8% increase MoM in US repo for August
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CME BrokerTec reports 8% increase MoM in US repo for August 11 September 2023UK Reporter: Jamie Richards
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CME BrokerTec has reported an 8 per cent month-on-month increase in US repo average daily volumes (ADV) to US$292 billion for August.
This makes August 2023 the fourth-best month on record for US repo in the platform’s history.
EU repo ADV showed steady growth through August and, at €309 billion, is up 13 per cent compared to the same period two years ago.
US treasury ADV on the BrokerTec platform was US$99 billion for August, in line with prior months as market volatility settled.
The firm also reports that overall book depth hit a high point for 2023, with 10-year book depth and its highest point post the invasion of Ukraine.
Erik Norland, senior economist at CME Group, says: “Bond yield in the US rose slightly over the course of August amid strong consumer spending data and the Fed's insistence that it will maintain rates at a high level for longer than the forward curve suggests is likely.
“UK and Eurozone bonds were little changed in August, but 10Y JGB yields continued to drift higher as a result of the BoJ's softening of the yield cap. Going into September the main source of uncertainty surrounds the possibility of further ECB and BoE rate hikes.”
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