Money and The Fed

Reports on the Fed and Treasury, primary dealers, foreign central banks, money market and mutual fund flows, and other factors that affect market liquidity

Monthly Treasury Statement Confirms What We Already Knew

The Federal government is swimming in cash. The monthly Treasury statement confirmed what we’ve been seeing all along in the real time daily reports from the Treasury– strong, and in some cases record collections in a variety of taxes. These include corporate estimated taxes collected for the first quarter and economically sensitive excise taxes. Once…

Here We Go Again- Is Somebody Positioned Wrong?

Banks, dealers, and FCBs have all been buyers of bonds lately. A breakout in yields could spell severe systemic problems, just like what happened in 2008 when dealers were on the wrong side of the trade and crashed the financial system. Could it be that nobody learned anything from that experience? Since there were no…