CME BrokerTec reports 11% rise in US repo volumes
06 February 2024 Europe, US
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CME BrokerTec has reported an 11 per cent year-on-year increase in US repo average daily notional value (ADNV), generating US$228 billion for January.
However, repo activity slowed during the first week of the year. John Edwards, global head of BrokerTec, CME Group, reports that there were fewer positions to finance in many dealer inventories and less 'special' securities in the market.
In line with previous years, the first week of January started slowly across both Euro and UK gilt repo markets.
Volumes started to increase as the month progressed, resulting in notional ADV of €273 billion.
BrokerTec US Treasury ADV was up 2 per cent YoY to US$108 billion in January.
“Economic data in January was a mixed bag,” comments Erik Norland, chief economist at CME Group.
“European bond yields followed a similar pattern to US Treasuries, with yields rising during the first three weeks of the year. However, they did not rally as strongly as the US Treasuries did later in the month.”
However, repo activity slowed during the first week of the year. John Edwards, global head of BrokerTec, CME Group, reports that there were fewer positions to finance in many dealer inventories and less 'special' securities in the market.
In line with previous years, the first week of January started slowly across both Euro and UK gilt repo markets.
Volumes started to increase as the month progressed, resulting in notional ADV of €273 billion.
BrokerTec US Treasury ADV was up 2 per cent YoY to US$108 billion in January.
“Economic data in January was a mixed bag,” comments Erik Norland, chief economist at CME Group.
“European bond yields followed a similar pattern to US Treasuries, with yields rising during the first three weeks of the year. However, they did not rally as strongly as the US Treasuries did later in the month.”
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