Repo traders brace for wild quarter-end

Overnight repo rate expected to widen dramatically on Friday

Robo advice

The cost of borrowing overnight cash in the repo market is poised to hit levels not seen since the financial crisis as dealers aggressively pare their balance sheets ahead of a quarter-end deadline for regulatory reporting.

The general collateral repo rate at which dealers lend to each other averaged 90 basis points on Thursday morning – compared to around 50bp through much of September – and is widely expected to top 100bp on Friday.

"The repo market is going to be more and more disjointed as

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