Centrally cleared repo market brief

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Through innovative and flexible cash investment and financing solutions, we provide both our custody and third-party clients access to the Fixed Income Clearing Corporation (FICC) sponsored repo platform.

Given the interconnectivity between repo markets, monetary policy and macroeconomic trends, we want to help you stay up to date on what’s happening in the market with a specific focus on the rapidly growing sponsored segment. With views on recent market trends and what to expect in the future, our quarterly briefs give you the insight you need to unlock the benefits of centrally cleared repo.

April 2024

Highlights from this quarter

  • Repo markets were primarily range-bound as cash continues to sit in the front-end due to continued uncertainty on the Fed’s rate cut timeline.
  • Heavy front-end cash compressed rates slowed the trend of volumes draining out of the Fed’s RRP facility.
  • Market sentiment skewed hawkish this quarter as inflation remains above the Fed’s target range and the timeline for cuts continues to be pushed out.

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