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In regard to special spreads, each of the following is true EXCEPT which is false?
A
On-the-run (OTR) issues tend to trade "more special" than off-the-run (OFR; i.e., old or double-old) issues, where "more special" refers to special spreads that are larger.
B
The special spread equals the general collateral (GC) repo rate minus the special collateral (aka, specifically requested collateral) repo rate.
C
On-the-run special spreads peak immediately after an auction, and tend to decrease over the cycle, reaching their lowest level immediately before the next auction.
D
Special spreads tend to be volatile on a daily basis (reflecting supply and demand for special collateral) and special spreads can be quite large (e.g., hundreds of basis points).
