Mixed results at NEX in August
05 September 2018 London
Image: Shutterstock
NEX Group show that European repo was up 15 percent year-on-year (YoY) in August, reaching €261.2 billion, against €228 billion in August 2017.
European month on month change was 4 percent—up from $250.3 billion in July.
The results, showing NEX Group’s statistics for August also indicated US repo activity was down 3 percent, hitting US $217.9 billion average daily volume (ADV) for the first eight months of this year.
This was compared to $225.8 billion in the same period of 2017.
US Treasury ADV was also down 3 percent YoY in August, to $127.8 billion, compared with $131.2 billion in August 2017.
NEX have also released their commentary on the EU Repo volumes on the BrokerTec platform.
It said: "For most of August the type of activity was similar to July, with an over-riding 'holiday feel and slower markets. Volume has started to return to more normal levels in the last 10 days following the UK Bank Holiday and back to those we were seeing in June.
"EuroGC+ has been very quiet throughout the summer months, although again, picked up slightly in this last week of August. Month end saw no stress volatility in the repo markets, with only a handful of bonds trading truly special."
"In the wider market, the US/China tariff ‘wars’ continued and Turkey’s economy became a major focus due to problematic politics, big deficits, double digit inflation and newly imposed US sanctions. The Lira is down 40 percent versus where it started the year and the European Central Bank was paying close attention to the situation, especially to the European Banks heavily exposed to Turkey."
Though, NEX concluded: "None of these scenarios had a significant impact on our repo volumes and the levels being traded."
European month on month change was 4 percent—up from $250.3 billion in July.
The results, showing NEX Group’s statistics for August also indicated US repo activity was down 3 percent, hitting US $217.9 billion average daily volume (ADV) for the first eight months of this year.
This was compared to $225.8 billion in the same period of 2017.
US Treasury ADV was also down 3 percent YoY in August, to $127.8 billion, compared with $131.2 billion in August 2017.
NEX have also released their commentary on the EU Repo volumes on the BrokerTec platform.
It said: "For most of August the type of activity was similar to July, with an over-riding 'holiday feel and slower markets. Volume has started to return to more normal levels in the last 10 days following the UK Bank Holiday and back to those we were seeing in June.
"EuroGC+ has been very quiet throughout the summer months, although again, picked up slightly in this last week of August. Month end saw no stress volatility in the repo markets, with only a handful of bonds trading truly special."
"In the wider market, the US/China tariff ‘wars’ continued and Turkey’s economy became a major focus due to problematic politics, big deficits, double digit inflation and newly imposed US sanctions. The Lira is down 40 percent versus where it started the year and the European Central Bank was paying close attention to the situation, especially to the European Banks heavily exposed to Turkey."
Though, NEX concluded: "None of these scenarios had a significant impact on our repo volumes and the levels being traded."
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to Securities Finance Times
