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Finanzagentur increases bonds available for repo

BUNDS
  • Lots of questions on the Fiananzagentur announcement that it is increasing its own holdings for repo trading.
  • This is NOT a significant market moving event - although Bunds have moved lower.
  • There is no increase in issuance, this is purely an increase in the availability of Bunds for repo ops.
  • The Reuters headlines are badly worded - and make it sound as though this is an increase in issuance. To be clear - there is no increase in issuance from these ops.
  • The UK DMO does a similar thing on a quarterly basis and no one bats an eyelid...

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