The easiest way to understand it is nterest rate spreads are what people are willing to pay in Repo as compared to the stated rate.
So when people take a 4 week T-Bill and have a 21 basis point premium they are willing to pay, it shows they are have other motives than just getting the return. After they are losing money on the spread.
Why do they do that? In Repo, it is the collateral that is more important.
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