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

Dealers and Banks Find Loose Change In The Sofa

Unusually light Treasury supply and $225 billion in term Reverse Repos returned to the banks’ regular deposits at the Fed on January 5 resulted in too much cash meeting too little paper this week. We’ve seen how that worked out. Here’s a look ahead at supply conditions and what that implies for the markets for…

Risk Off Is On

The 10 year Treasury yield has dropped to a major support level, which if broken would suggest even lower yields ahead as investors worldwide again plow into the risk off, safe haven trade. The Dollar has reached a couple of cycle projections and major trend resistance but if it trades in a range for a…

Fed Raises Rates, Market Doesn’t Listen

This report looks at flows on the liability side of the balance sheet of the Fed and the assets of Primary Dealers, along with secondary banking and financial indicators that can, at times give us clues about the future. The Fed’s Term Deposit Facility has now grown to $400 billion in funds transferred from the…