The seven day repo rate in China dropped below 2.5% Wednesday, exceeding expectations.

FORBES: Don't Expect Strong China PMI Thurs

Every day, the Bear repo desk had to keep the firm alive with new overnight repo financing, or it was out of business so to speak.

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So why would it be significantly cheaper for banks to borrow on the repo markets for a year than for a day (which as I say wasn't so even a month ago)?

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