WSJ: Repo Failures at Highest Level Since 2008

Shift in sentiment is cited after Feb. 11 low for U.S. stock indexes, oil-futures prices and Treasury yields
Among the factors causing an increase in settlement failures is a reduction in Treasury-auction sizes as the government’s fiscal deficit declines.
Katy Burne
Updated March 21, 2016 7:07 p.m. ET
Settlement failures in Treasury repurchase transactions in March hit their highest level since 2008, underscoring concerns on Wall Street that trading conditions are apt to deteriorate in even the most-liquid markets under the acute stress evident early this year.
Almost 13% of Treasury repos through primary dealers in the week ended March 9 included a failure by one party to deliver securities as promised, according to the latest data available from the Federal Reserve Bank of New York. That is up from 2.7% last year and the highest ratio since 2008, said Joseph Abate, an analyst at Barclays PLC.
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