Gilt repo market
Gilt repo transactions are sale and repurchase agreements in British government stock, conducted in accordance with legal documentation. A repo transaction may be stock or money-driven; a stock may be reverse-repoed (bought with an agreement to re-sell it) to cover a short position, e.g. cash may be borrowed against a repo of a mixture of gilts as "collateral" for the loan. The latter, a general collateral (GC) transaction, is a money-driven trade, and so GC repo is a market in secured money. The rates quoted in the table are indicative secondary market mid-rates of bid and offer GC rates collected at 8.30am.