Reuters exclusively reported that Germany’s finance agency has stepped in to ease a bond shortage that developed in the overnight lending market in a sign of stress, following the European Central Bank’s hawkish pivot and more recently the Ukraine-Russia crisis. A deepening scarcity of German government bonds, widely used as collateral against repo loans, had developed after the European Central Bank’s Feb. 3 meeting and the Ukraine crisis, sharply lifting the cost of borrowing them.
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