How Auctions Reveal Information: A Case Study on German REPO Rates

Dieter Nautz

Journal of Money, Credit and Banking, 1997, vol. 29, issue 1, 17-25

Abstract: Securities repurchase agreements (REPOs) have become the Bundesbank's most important tool for its ongoing money market management and the control of the monetary base. In the fall of 1988, the Bundesbank changed the applied auction rule in order to prevent banks from submitting exaggerated bids. Focusing on the information content of a resulting REPO rate, this paper investigates how German money market rates react to auction results. Evidence will be found that the response of the money market to a new REPO rate reflects the applied auction rule. Copyright 1997 by Ohio State University Press.

Date: 1997
References: Add references at CitEc
Citations: View citations in EconPapers (25)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mcb:jmoncb:v:29:y:1997:i:1:p:17-25

Access Statistics for this article

Journal of Money, Credit and Banking is currently edited by Robert deYoung, Paul Evans, Pok-Sang Lam and Kenneth D. West

More articles in Journal of Money, Credit and Banking from Blackwell Publishing
Bibliographic data for series maintained by Wiley-Blackwell Digital Licensing () and Christopher F. Baum ().