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Wed, 22 Feb 2006
Interesting TMG e-mail.
with 2yrs trading close to 15bln this afternoon in the repo mkt they will probably go thru over the weekend near fail..hence the carry cost will be at least 1 1/4 to 1 3/4 bps for 2/5's and 1 1/2 to 2 bps for 2/10's over the weekend..look for fast money to exit these trades and the curve to correctively steepener (less invert) tomorrow and friday..
Posted 12:30

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