Repo Market Commentary

Overnight repo rates backed up 4-5 basis points on February 12, 2026, driven by a $23 billion collateral sell-off and cash market dislocations.

Key Takeaways

• 1.Overnight repo rates experienced an unexpected back-up of 4 to 5 basis points despite low net new issuance.
• 2.A single large bank acted as a 'phantom seller,' offloading over $23 billion in collateral at the market open.
• 3.Market dislocation between cash and securities followed a significant sell-off in the cash market the previous day.

Table of Contents

• Specials Issue
• Repo Market Back-Up

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