Please help me find the fault in my reasoning!
It seems to me that when a bond is trading special , it is in short supply and high demand , and so excessive number of people are borrowing money to buy it , and so these people would be willing to pay a HIGH interest rate (= repo rate) in order to get it.
But , the reasoning somehow should be that the repo goes DOWN when bond is special.
Please in your answer actually refute my above reasoning and also please explain without using unclear jargon.