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Index/Topics/Repo Market Functioning

Repo Market Functioning

The functioning of the repo market in providing liquidity and facilitating the absorption of Treasury sales.

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Feb 1, 2026

What mechanisms would allow other buyers to absorb a large sale of U.S. Treasuries and mute market impact?

Treasuries can be absorbed with limited price disruption if a combination of market intermediation, alternative buyer demand, central-bank backstops and structural policy tools kick in: primary dealer...

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