标题: LIBOR over Govt bond yield [打印本页] 作者: meghanjackson 时间: 2011-7-11 19:40 标题: LIBOR over Govt bond yield
in schweser it says that --
Supply/demand of swaps by particpants willing to enter into a swap --- AGREED
It is not affected by technical mkt factors that can affect govt bond ---Can anyone explain this?
Yields on government bonds might be distorted if they are trading in the repo market.作者: iteracom 时间: 2011-7-11 19:40
Foreigners also buy because of tax advantage where they may prefer some bonds over others...also in repo market, may be a 10-yr bond is hot causing its yield to reflect untrue, non-market returns. Swaps are a "fair" game.
