We brought this to your attention on Friday. The repo bond market is basically a tool to borrow treasuries especially the 10 yr note. The amount of borrowings has been so great that the negative 2.75% yield means that the borrower is paid to borrow. It also means that there is a scarcity of bonds as everybody has shorted the treasuries and loaded the boat on the short side. This has caused many failures to deliver and for investors it is better to pay the penalty than to deliver the paper

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