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

Macro Liquidity Stays On Track

Domestic and international liquidity indicators remain on track in support of the US bull markets in stocks and bonds. The threat from the commodity collapse has receded for now as currencies have stabilized. Greece is the wild card. On its own it would not do significant damage. A chain reaction stemming from recognition of Greek…

Booming Tax Collections Fill Treasury’s Coffers But It Schedules Massive New Supply

The Federal Government’s withholding tax collections rebounded strongly again last week, signaling the upside of usual short term cyclical pattern that we’ve seen in this data. Collections reached their strongest levels since last September. Individual non withheld taxes also soared. The government is flush with cash, but it expects to hit the market with massive…

Was This As Good As It Gets For Treasuries?

Treasuries resumed their furious rally this week. The question is how? Foreign central banks are not buying, Primary Dealers have been on the fence, and in Europe, the banks paid back $148 billion in the ECB’s LTRO loans yesterday that were partly used to fund a Treasury carry trade. Here’s the answer, and what it…