Historic Repo Market Insanity: 10Y Treasury Trades At -4% In Repo

[Daal]

https://www.zerohedge.com/markets/h...treasury-trades-4-ahead-monster-short-squeeze

 

[helpme_please]

https://www.zerohedge.com/markets/h...treasury-trades-4-ahead-monster-short-squeeze

Can someone explain what does this article mean? My understanding about repo is that it is a very short-term debt market. What has it to do with 10year treasury bonds which is long-term debt?

 

[InAllHonesty]

Good read. Let's hope it's true - must admit none of us expected a pull back this deep (NDX/Growth) and nor do we expect it to last. But it's looking like it could get spicy!

 

[InAllHonesty]

Can someone explain what does this article mean? My understanding about repo is that it is a very short-term debt market. What has it to do with 10year treasury bonds which is long-term debt?

Expecting yields to plummet and stocks to go up

 

[Sig]

Can someone explain what does this article mean? My understanding about repo is that it is a very short-term debt market. What has it to do with 10year treasury bonds which is long-term debt?

You pledge collateral, often 10 year treasuries, to the repo market. So it's overnight borrowing against a much longer term security.

 

[bone]

Research "US Treasury Basis Spread Trade".

https://www.cmegroup.com/education/...ging-repo-exposure-in-the-treasury-basis.html

Can someone explain what does this article mean? My understanding about repo is that it is a very short-term debt market. What has it to do with 10year treasury bonds which is long-term debt?