The overnight repo market............>

US TSYS/SUPPLY: The overnight repo market Wednesday saw the US Tsy 2-year note

continue tight, while the Treasury General Collateral keyed off the Overnight

Bank Funding Rate (OBFR).

- The Treasury General Collateral rate rose as it now pushes "off of OBFR," vs.

prior pattern of the G/C rate keying off the day's one-day Fed Reverse Repo

operation, said traders. (See New York Fed link:

https://apps.newyorkfed.org/markets/autorates/obfr).

- That occurred as the OBFR on Tuesday, Dec. 19th rose to 1.42% vs. Monday 1.41%

and vs. 1.16% on Dec. 13th, the day the Fed lifted the fed funds rate by 25 bps.

- The two-year note demand occurred amid shorts related to next week's

2/5/7-year Treasury auctions, which will be announced this Thursday at 11:00

a.m. ET, said traders.

- The Treasury General Collateral rate meanwhile rose to 1.44%, vs. 1.40%

Tuesday. Meanwhile Agencies traded at 1.49%, while Agency MBS traded at 1.50%.

The 3-year notes traded at 1.38%, 5-year at 1.15%, 10-year at 1.15% and 30-year

at 1.38%.