``We know from FOMC minutes last year that the Fed have been assessing the repo market, so it is a definite possibility. All that is required is interest rate certainty, and that is what the Fed gave the market in its announcement that it would peg rates at close to zero for the next two years. The probability that the repo market will be developed in this way has been increased by the inclusion on the 27th July of both Fanny Mae and Freddy Mac on the Fed's Reverse Repo Counterparty List. We should be interested in this development, because it allows these government-owned entities to gear up their fast-accumulating cash for certain returns, and using government entities allows the Fed to exercise further controls on the development of the repo market.''

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