funding rates on repo markets & bond yields are not the same different timescales: 1️⃣ repo - short-term / ≈day(s),week(s) 2️⃣ treasury bonds - ≈10 years so even if a funding rate raises for a few days, the longer-term bond yields may not be affected

Illya Gerasymchuk 2025-07-07 18:16

note that FED’s SFR doesn’t lower the treasury yields per se it’s more correct to say that it puts downward pressure on them, in the form of a $500B buffer & note that treasuries probably wouldn’t be the first in line for liquidation