Repo agreement (or repo) is short for a repurchase agreement or a sale and repurchase agreement, where one party sells a debt security to another party for cash and agrees to repurchase it or an equivalent security on a specified date for a specified (higher) price.

Securities that are typically the subject of repos are government bonds, such as UK gilts and US treasury bills.

For information on repos and the documents required in a repo transaction, see Practice note, Repos: documenting and understanding repos.