1.   Gilts were little changed in response to the money supply figures because of the impact on the figures of the repo market.

2.   He added that late Thursday there were signs that the problems in the repo market were easing.

3.   Hence the bond market jargon, repo market.

4.   In less than a year, the repo market has eclipsed the market for loaning bonds without collateral.

5.   In the absence of a repo market, investors either loaned bonds without collateral, or swapped bonds for a fee.

6.   It was clear early this week that the threat of trades not being competed was creating a major distortion in what is called the repo market.

7.   Other similar repo markets include Germany and France.

8.   Some analysts, Crandall included, say they expect the new issues to command an even higher premium in the repo market.

9.   The apparent unwillingness to lend securities in the repo market has driven the cost of short-term borrowing using Treasury securities as collateral to near zero.

10.   The paper also said the repo market is set to begin in April.