shorter-term US bonds yields react IMMEDIATELY to repo funding rate notice the huge green candle on June 30th - the same day of FED’s SRF $11B volume June 30th is when the FED SRF volume recorded ≈$11B this is a 1 month treasury bill ⬇️

Illya Gerasymchuk 2025-07-07 18:20

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