BrokerTec released its monthly stats for June 2023 with commentary from John Edwards, global head of BrokerTec at CME Group.
EU Repo
BrokerTec’s EU Repo volumes remained robust during June, with an average daily volume (ADV) of €359 billion ($390.1bn). On June 15 the European Central Bank (ECB) raised their rates in line with market expectations by 25bp, taking the deposit rate from 3.25% to 3.5%. The week following the ECB’s rate hike, BrokerTec saw increased volumes across EU repo markets. On June 22 the Bank of England surprised the market with a rate hike of 50bp, double the 25bp expected.
US Repo
US Repo on BrokerTec saw an ADV of $270bn for June, compared to $262 billion the previous year. Total money market fund balances remained steady at $5.4 trillion in the last week but due to the resolution of the Debt Ceiling the RRP at the Fed was down to $1.9 trillion, as market participants continue extending out the curve and away from overnight repo.
US Treasuries
BrokerTec’s US Treasuries ADV was $100 billion in June. Bond markets moved past the debt ceiling crisis early in the month, with market participants focusing on future Federal Open Market Committee (FOMC) decisions and US growth prospects.