CME BrokerTec reports 9% rise in EU repo volumes
03 April 2024 Europe, US
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CME BrokerTec has reported a 9 per cent year-on-year increase in EU repo average daily notional value (ADV), generating US$299 billion for March.
According to BrokerTec, central bank activity throughout the month was in line with market expectations, with the Federal Reserve System, European Central Bank and Bank of England all maintaining their interest rates at current levels.
For US repo, ADV was US$286 billion for the same month. The firm reported slower activity at the start of the month, before increasing for the final quarter as dealers looked to net their positions at FICC.
BrokerTec US Treasury ADV was US$92 billion in March.
John Edwards, global head of BrokerTec, CME Group, comments: “Market participants continue to focus on managing risk around shifting rate expectations and book depth has remained strong during a volatile start to the year.”
Erik Norland, chief economist, CME Group, adds: “UK and Eurozone bond yields fell slightly across the curve in March as soft economic data and falling inflation tilted the ECB further in the direction of easing policy sometime later this year.”
According to BrokerTec, central bank activity throughout the month was in line with market expectations, with the Federal Reserve System, European Central Bank and Bank of England all maintaining their interest rates at current levels.
For US repo, ADV was US$286 billion for the same month. The firm reported slower activity at the start of the month, before increasing for the final quarter as dealers looked to net their positions at FICC.
BrokerTec US Treasury ADV was US$92 billion in March.
John Edwards, global head of BrokerTec, CME Group, comments: “Market participants continue to focus on managing risk around shifting rate expectations and book depth has remained strong during a volatile start to the year.”
Erik Norland, chief economist, CME Group, adds: “UK and Eurozone bond yields fell slightly across the curve in March as soft economic data and falling inflation tilted the ECB further in the direction of easing policy sometime later this year.”
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