Illya Gerasymchuk
Entrepreneur / Engineer
persistently high(er) funding repo rates will push the treasury yields up eventually, the bonds would be sold for cash again - think of the timescale: funding rates refer to much shorter periods
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