Assume that on December 2, YY, the cheapest bond to deliver was the 6 1/4s maturing on August 15, YY+18. The March contract is priced June futures price is 111.75. The conversion factor for the 6 1/4s delivered on the June contract is 1.0265. The accrued interest on the bond on March 7, the assumed delivery date, is 0.35, and the accrued interest on June 5 is 1.90. There are no coupons between the two futures expiration dates. Calculate the implied repo rate for the March-June YY+1 Treasury bond futures spread. If the actual forward repo rate is 4 percent, what do you recommend?