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

Somebody Lit The Tinder

The markets have been stable while new Treasury supply was very light, as the Fed was settling $31 billion in MBS purchases this week. Since nothing moved much, it suggests that the Fedbucks have not been deployed yet. This could be a tinderbox to the upside. Stocks have been the most loved asset, so they…

Light Treasury Supply Puts Wind In Market Sails

Light Treasury supply continues to put the wind at the market’s back. Stocks continue to get the benefit, but the performance of the Treasury market has been lackluster, suggesting that without the Fed buying a big chunk of government issuance every month the bond market is likely to experience more persistent pressure than it has…