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Illya Gerasymchuk
Entrepreneur / Engineer
User Illya Gerasymchuk -

2025-07-07 18:19

repo funding rates don't affect US treasury yields immediately due to time scale treasury bond yield expectation is over 10 years, and repo rates are a short-term debt funding mechanism so the rates shock would need to be prolonged/pronounced to affect treasury rates

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funding rates on repo markets & bond yields are not the same different timescales: 1๏ธโƒฃ repo - short-term / โ‰ˆday(s),week(s) 2๏ธโƒฃ treasury bonds - โ‰ˆ10 years so even if a funding rate raises for a few days, the longer-term bond yields may not be affected

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