Skip to content
Subscriber Only

Treasury Notes Turn Special in Repo Market Amid Debt Auctions

Treasury notes with maturities ranging from two to seven years have become coveted in the short-term market for borrowing and lending securities as the government auctions more of the securities this week.

Traders have been willing to pay to borrow the debt in exchange for loaning cash for the most actively traded five-, seven- and 10-year notes, with repurchase agreement rates negative. Many times traders short, or sell securities they’ve borrowed in the repo market, ahead a Treasury sale to profit if prices of the securities fall after the auction.