A chronicle of repurchase agreements (RP) and other paradoxical property ownership contracts - www.omo.co.nz
Monthly government bond market turnover - Three-month moving average.
The Reserve Bank has increased the use of foreign exchange swaps (see graph below) in its daily liquidity management operations, which has the advantage of not withdrawing bonds from the market. The Bank is considering other ways that it could address market liquidity, with details expected to be provided to the market in the coming months.
Source: RBNZ
Source: RBNZ
©2008 Open Market Operations Limited. All rights reserved.
OMO Matters
US Federal Reserve Reference Publications
"The market for repurchase agreements on US government securities is of vital importance to the New York Fed, and the whole Federal Reserve System, because it is where virtually all of our monetary policy operations are conducted."- Peter Fisher, Manager, System Open Market Account - 15 January 1997.
"Open market operations are not another weapon in the Fed's arsenal, but the only weapon in its arsenal." - Monetary Trends, St Louis Federal Reserve, August 2003.
Repurchase Agreements with Negative Interest Rates - FRBNY - A primer detailing how short sales of Treasury securities can lead to protracted RP fails and consequently negative rates to address capital requirement issues.
OMO-Repo Misuse - Letters to Hon. Dr. Michael Cullen, N.Z. Minister of Finance.
Repo Transaction Accounting. Letter to Mr A Orr, RBNZ.
IMF Repo Accounting Examples, Full Article
NZ Debt Management Office Uridashi issue and associated EuroKiwi letters to Hon. Dr. Michael Cullen, N.Z. Minister of Finance.