BrokerTec US repo volumes reach new all-time high
05 September 2025 US
Image: Pete/stock.adobe.com
BrokerTec has reported a new all-time high for US repo volumes in August, which were up 29 per cent year-on-year (YoY) to US$380 billion for average daily notional value (ADNV).
Cash market volatility collided with structural demand tailwinds to fuel financing and collateral management needs ahead of month-end, the firm says.
The surge in volumes began on 25 August, with a volatile session in the US Treasury market driving the platform's third-largest volume day ever. This was followed by the platform's single largest day ever on 27 August with volume exceeding US$478 billion.
BrokerTec's overall ADNV for August was US$915 billion, up 20 per cent YoY, says John Edwards, global head of BrokerTec, CME Group.
The figure represents activity across benchmark cash US Treasuries, European government bonds, as well as US and EU repo on BrokerTec鈥檚 dealer-to-dealer central limit order book (CLOB), dealer-to-client request-for-quote (D2C RFQ), and streaming platforms.
For BrokerTec EU repo volumes, activity increased 3 per cent YoY in August to 鈧�281 billion ADV. EU Repo remained generally quieter in August with cheapest-to-deliver (CTD) activity slow for the September contract.
According to John Edwards, global head of BrokerTec, CME Group, gilts saw a small amount of cheapening in general collateral (GC) crossing the August month-end, which fell on 29 August, adding to a small premium for the month-end for overnight GC.
He continues: 鈥淭he UK received a stable review from Fitch at month-end to maintain its rating. The S&P review in October, and the impending Autumn Budget are the next key events that markets will be focused on.鈥�
The firm also reports that US Treasuries ADNV for the month of August was US$82.2 billion, down 28 per cent YoY. BrokerTec's RV product suite reached US$1.9 billion ADNV in the same period.
Commenting on the report, Erik Norland, chief economist at CME Group, says: 鈥淵ield curves steepened around the world in August 2025 as the Bank of England cut rates and Fed officials signaled a strong likelihood of a September rate cut.鈥�
In the US, 2-year US Treasury yields fell 34 basis points, while 5-years fell by 28bps. Meanwhile, 10-year Treasury yields fell by only 15bps, while the 30-years rose by 3bps during the month.鈥�
In the UK, it was 鈥渕ore of a bear steepening鈥�, says Norland. UK 2-year gilt yields rose by 8bps, despite a 25bps cut on the part of the BoE, while 10-year and 30-year gilt yields rose by 15bps and 22bps, respectively.
In France 鈥� confronted with large budget deficits and the prospects for a vote of no confidence in the National Assembly 鈥� 2-year BTAN yields fell by 0.5bps while the 5-years rose by 6bps.
Norland adds: 鈥淔urther up the curve, yields jumped 16.4bps for 10-year OATs and 29.2bps for French 30-year bonds. The German and Japanese bond curves continued to steepen as well.
鈥淩ate cuts amid persistently above-target and rising core inflation and large budget deficits/high debt levels have created concern among bond investors worldwide.鈥�
Cash market volatility collided with structural demand tailwinds to fuel financing and collateral management needs ahead of month-end, the firm says.
The surge in volumes began on 25 August, with a volatile session in the US Treasury market driving the platform's third-largest volume day ever. This was followed by the platform's single largest day ever on 27 August with volume exceeding US$478 billion.
BrokerTec's overall ADNV for August was US$915 billion, up 20 per cent YoY, says John Edwards, global head of BrokerTec, CME Group.
The figure represents activity across benchmark cash US Treasuries, European government bonds, as well as US and EU repo on BrokerTec鈥檚 dealer-to-dealer central limit order book (CLOB), dealer-to-client request-for-quote (D2C RFQ), and streaming platforms.
For BrokerTec EU repo volumes, activity increased 3 per cent YoY in August to 鈧�281 billion ADV. EU Repo remained generally quieter in August with cheapest-to-deliver (CTD) activity slow for the September contract.
According to John Edwards, global head of BrokerTec, CME Group, gilts saw a small amount of cheapening in general collateral (GC) crossing the August month-end, which fell on 29 August, adding to a small premium for the month-end for overnight GC.
He continues: 鈥淭he UK received a stable review from Fitch at month-end to maintain its rating. The S&P review in October, and the impending Autumn Budget are the next key events that markets will be focused on.鈥�
The firm also reports that US Treasuries ADNV for the month of August was US$82.2 billion, down 28 per cent YoY. BrokerTec's RV product suite reached US$1.9 billion ADNV in the same period.
Commenting on the report, Erik Norland, chief economist at CME Group, says: 鈥淵ield curves steepened around the world in August 2025 as the Bank of England cut rates and Fed officials signaled a strong likelihood of a September rate cut.鈥�
In the US, 2-year US Treasury yields fell 34 basis points, while 5-years fell by 28bps. Meanwhile, 10-year Treasury yields fell by only 15bps, while the 30-years rose by 3bps during the month.鈥�
In the UK, it was 鈥渕ore of a bear steepening鈥�, says Norland. UK 2-year gilt yields rose by 8bps, despite a 25bps cut on the part of the BoE, while 10-year and 30-year gilt yields rose by 15bps and 22bps, respectively.
In France 鈥� confronted with large budget deficits and the prospects for a vote of no confidence in the National Assembly 鈥� 2-year BTAN yields fell by 0.5bps while the 5-years rose by 6bps.
Norland adds: 鈥淔urther up the curve, yields jumped 16.4bps for 10-year OATs and 29.2bps for French 30-year bonds. The German and Japanese bond curves continued to steepen as well.
鈥淩ate cuts amid persistently above-target and rising core inflation and large budget deficits/high debt levels have created concern among bond investors worldwide.鈥�
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