Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Ramsey Su who wrote (74601)	11/29/2006 12:47:51 PM
From: Ramsey Su	Read Replies (3) \| Respond to of 110194

U.S. Repo Open: 10-Year Note Is at Lowest Rate of 1.95 Percent 2006-11-29 08:31 (New York) By Ye Xie Nov. 29 (Bloomberg) -- The following is a summary of early trading in the market for U.S. repurchase agreements, or repos, in New York. All repo rates are for overnight transactions based on trading at nine repo brokers, as reported to GovPX Inc., a unit of ICAP Plc, the world's largest interdealer broker. Lowest Repo Rate as of 8 a.m. New York time: The 10-year note, a 4 5/8 percent coupon maturing in November 2016, opened with the lowest repo rate: 1.95 percent. Other Rates: Current two-year note: 5.25 percent. Old two-year note: 4.75 percent. Current three-year note: 5.25 percent. Old three-year note: 5.25 percent. Current five-year note: 5.2 percent. Old five-year note: 5.25 percent. Old 10-year note: 5 percent. Current 30-year bond: 5.15 percent. Old 30-year bond: 5.2 percent. Current issues are the most recently issued securities, and old issues are those sold previously with the same maturity. Specific Treasury securities in the greatest demand are considered to be ``on special.'' Firms that want to borrow them are willing to lend money overnight at rates below those on general collateral or other Treasuries in exchange for them. Behind the Numbers Securities firms use repos to borrow money to finance positions in Treasury, corporate and mortgage-backed securities. They also borrow securities on reverse repos to make deliveries of sales of securities the dealers don't own, and engage in speculative repo trading based on expectations for the future direction of interest rates. Current five- and 10-year notes often trade at the lowest repo rates because they are widely used as hedges against positions in corporate, mortgage and global debt. General Collateral Delivery repos: 5.27 percent. The collateral is sent to an investor's bank against receipt of funds. Triparty repos: 5.3 percent. A clearing bank acts as a third party to make sure there's adequate collateral behind the repo and that it conforms throughout the life of the transaction to the investor's requirements, providing the customer with an additional layer of safety. Securities firms are willing to pay higher rates to borrow money through triparty repos because they can allocate leftover collateral remaining at their clearing bank late in the day as backing for the transactions, saving on delivery costs. Rates on general repos, or those backed by non-specific collateral, are usually set slightly below federal funds levels. Treasury Bills The three- and six-month Treasury bills opened at 5.25 percent. Federal Funds Federal funds, the overnight interbank lending rate, opened at 5 1/4 percent, in line with the Federal Reserve's target, according to ICAP Plc.

To: Ramsey Su who wrote (74601)	11/29/2006 2:15:01 PM
From: Les H	Respond to of 110194

Funny coincidence that the reporting of TIOs stopped about that time. fms.treas.gov

To: Ramsey Su who wrote (74601)	11/29/2006 2:49:29 PM
From: bart13	Respond to of 110194

Comments from anyone that might have been watching? I believe Russ picked up my original work on TIOs (Treasury repos) from my posts here and article written in mid September: nowandfutures.com I track TIOs along with temp repos on my daily page at: nowandfutures.com The bigger TIO operations do have a small tendency to start around mid month, and didn't seem to be "needed" in mid November - for what its worth.