Treasury 10-Year Note Repo Shortage Sends Rates Below Zero
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Treasury 10-year notes are in short supply in the $1.66 trillion-a-day market for borrowing and lending securities before the government’s sale of $21 billion of the notes Wednesday.
Traders are willing to pay to borrow the notes in the repurchase-agreement market in exchange for loaning cash overnight for the most actively traded 10-year maturity, with rates reaching negative 1.99 percent Wednesday, after sliding below negative 2 percent Tuesday, according to data from ICAP Plc tracked by Bloomberg.