Bloomberg: EU lending out excess cash into Europe’s bond repo market

The European Union has started lending out its excess cash in the repo market in exchange for bonds, providing a fresh injection of euros to investors grappling with increasing debt supply, reports Bloomber.

The so-called reverse repo operations commenced in June, a European Commission spokesperson told Bloomberg News. The initiative will earn the EU better returns on its cash holdings and brings its cash management policies in line with those of national governments.

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