Finadium’s new Deriv1.com datahub for US Treasury repo shows that the cost to repo under one year US Treasuries yesterday fell to 4.15%, about 20 bps lower than other UST issues. This indicates an expected decline in very short-term interest rates; we’re thinking that this is hedge funds expecting the Fed to cut rates while UST short term purchases are being bought and not lent. Here’s the chart:
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