Fed Drains, But Treasury Comes to Rescue – WSE Pro

The Fed added another permanent on Monday, but drained $3 billion on balance. It announced a coupon purchase of just under $750 million, and added $11.75 billion in overnight repos but that was still insufficient to offset $15.5 billion in expirations. But fear not, the Treasury is coming with another paydown of $15 billion on the 4 week bills this week. And in spite of today’s drawdown, the Fed is probably still in year end pumping party mode. Click here to download complete report in pdf format (Professional Edition Subscribers).

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Lee Adler

I’ve been publishing The Wall Street Examiner and its predecessor since October 2000. I also provide analysis and charts for David Stockman's Contra Corner which I developed for Mr. Stockman. I’ve had a wide variety of finance related jobs in the past 44 years, including a stint on Wall Street in both analytical and sales capacities. Prior to starting the Wall Street Examiner I worked as a commercial real estate appraiser in Florida for 15 years. I also worked in the residential mortgage and real estate businesses in parts of the 1970s and 80s. I have been charting stocks and markets and doing analytical work since I was a teenager. My perspective is not of the Ivory Tower. It is from having my boots on the ground and in the trenches of the industries that I analyze and write about today. 

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