Liquidity Trader Pro Complete

Reports on the Fed and Treasury, primary dealers, foreign central banks, money market and mutual fund flows, and other factors that affect market liquidity. Includes all reports from Federal Revenues Pro Trader, Macroliquidity Pro Trader, and Treasury Supply and Demand Pro Trader. Click here to subscribe. Subscribers, click the post headline to access reports.

Here’s Why It’s Important That Stocks and Bonds Rallied Despite Tightening Liquidity

Monthly deficits have exploded since passage of the tax cut and Congressional Budget Busting Agreement. However, June was a tax collection month, padding the Treasury’s cash account. That allowed the Treasury to pay down a few T-bills in June. But there was still a big year to year increase in supply. Despite that, stocks and…

Stocks Try To Buck Macro Liquidity Turning Flat

Macroliquidity is flattening as the Fed withdraws money from the banking system and extinguishes it. That means that there is less and less money available to absorb new securities issuance, particularly US Treasuries. Bonds have been pummeled. But sellers of bonds used the liquidity generated by US commercial bank and foreign central bank buying to…

The Noose Tightens

The Treasury ramped up its pounding of the markets over the past month, and there’s no respite on the horizon. At the same time, the Fed is pulling money out of the system, with an increase in the rate of withdrawal scheduled for July. So the noose is tightening and the hangman stands ready.