BrokerTec announced that European Repo average daily notional value (ADNV) increased 5% to €351 billion ($386.9bn) in April year-over-year, and down from March’s €372 billion. According to commentary from John Edwards, global head of BrokerTec at CME Group, with the lower amount of business days in April, due to the Easter break, volumes remained stable.
CPI figures released during April, confirmed that inflation has remained sticky for both the UK and euro area, further interest rate hikes are expected in May across both regions.
US Repo ADV was steady at $280 billion down slightly from March’s $289 billion. Total money market fund balances rose to $5.26 trillion in the last week and the RRP at the Fed is holding around at $2.3 trillion, with signs of market participants managing their exposure to potential impacts from the US debt ceiling.
BrokerTec’s U.S. Treasuries ADV was $92 billion in April. US Treasury CVOL fell 13% and the average daily price range of the 10-Year Note fell 40% over the same period as markets were bounded by expectations around the May FOMC decision and trepidation in the banking sector.
RV Curve ADV was $1.0 billion ADV, following the downturn in volatility, with more than 50 unique participant trading to date.