ICBC Hack Kept Repo Market Open, Fueled Bond Delivery Failures
- Non-delivery of Treasuries rose to near an eight-month high
- Repo market got extension of hours to minimize pain: traders
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Non-delivery of US debt pledged as collateral surged on Thursday as the repercussions of a cyberattack on Industrial & Commercial Bank of China Ltd. rippled through the market.
US Treasury repo fails — the amount of US debt that wasn’t delivered to fulfill trade contracts — rose to $62.2 billion, the highest since March and up from $25.5 billion a day earlier, Depository Trust & Clearing Corporation data show. Such failures-to-deliver occur when either sellers do not deliver, or buyers do not receive, securities in time to settle a trade.