CME BrokerTec reports 8% increase MoM in US repo for August
11 September 2023 UK
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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.”
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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