Ben’s Hands Full, Will They Be Tied- WSE Pro

The Fed did two repos. That’s unusual for a Wednesday but not surprising given the combined negatives of a massive wave of Treasury settlements over the next 3 days, and yesterday’s market meltdown. The Fed added a net of $9.25 billion to the liquidity pool. It pumped in $10 billion in overnight repos and $7.25 billion in 2 day repos against expirations of $8 billion. The Treasury settles $7.7 billion in 2 and 5 year notes today, and $21 billion in T-bills tomorrow. That’s a big nut for the Fed, considering that it also faces a $21 billion repo rollover. Tomorrow the Treasury auctions $23 billion in CMBs which settle Friday, along with at least $7.25 billion in Fed repos. Ben will have his hands full. Click here to download complete report in pdf format (Professional Edition Subscribers).

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This entry was posted on February 28, 2007 at 2:54 pm and is filed under Money and The Fed, Professional Edition. You can follow any responses to this entry through the RSS 2.0 feed.