On the last day of 2018, the repo rate exploded, shooting up 147% to an intraday summit of 7.25%, in a market preview of the starry pyrotechnics that ushered in the new year that evening.
“I was flabbergasted by what happened at year-end,” says Christian Rasmussen, head of group Treasury assets and liabilities for the Americas at UBS, capturing the mood of those in attendance.
Though repo staged the most dramatic rise among short-term rates, others also swelled higher, and the timing – quarter
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