implied repo rate

Definition of "implied repo rate"
  1. The return gained by selling a futures contract and concurrently buying a bond or note with loaned money, where the bond with the maximum rate is considered the cheapest to deliver
How to use "implied repo rate" in a sentence
  1. The trader calculated the implied repo rate to assess the profitability of the futures contract.
  2. The financial report provided an overview of the asset's implied repo rate.
  3. Under current market conditions, the implied repo rate of the bond was significant.

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