Bloomberg: ECB Bond Lending to Spur Liquidity But May Not Ease Repo Squeeze

German two-year note yields rebounded from a record low after Reuters reported that the ECB is looking for ways to make it easier for banks to borrow bonds it’s bought so they can be used as collateral for repurchase agreements. An ECB spokesman confirmed its securities-lending program is being reviewed on an ongoing basis. Repos are a vital part of the financial market’s plumbing that’s been hit recently by a shortage of securities.
The full article is available here.

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