Shift in sentiment is cited after Feb. 11 low for U.S. stock indexes, oil-futures prices and Treasury yields
Among the factors causing an increase in settlement failures is a reduction in Treasury-auction sizes as the government’s fiscal deficit declines.
By
Katy Burne
Updated March 21, 2016 7:07 p.m. ET
Settlement failures in Treasury repurchase transactions in March hit their highest level since 2008, underscoring concerns on Wall Street that trading conditions are apt to deteriorate in even the most-liquid markets under the acute stress evident early this year.
Almost 13% of Treasury repos through primary dealers in the week ended March 9 included a failure by one party to deliver securities as promised, according to the latest data available from the Federal Reserve Bank of New York. That is up from 2.7% last year and the highest ratio since 2008, said Joseph Abate, an analyst at Barclays PLC.
The full article is available at http://www.wsj.com/articles/repo-failures-at-highest-levels-since-2008-1458580656?cb=logged0.36498711086859903
