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.

Updated – All That Cash – Gone With The November Wind

The problem we have been anticipating is here. The debt ceiling deal is done and the Treasury is clawing back the $140 billion it had poured into dealer and investor accounts since mid September. That cash reversed the normal October supply/demand balance. It drove the stock market rally. Now the Treasury needs to get that…

The Most Important News Today – Treasury announces 69-Day Bill- The Clawback Begins

This is even more important than the FOMC announcement. Now that the debt limit deal is all but signed, sealed, and delivered, the Treasury will begin to claw back some of the $140 billion in cash it paid to dealers and other investors who held expiring 4 week bills, and maturing 2 year notes that were not rolled over since September 15,

Updated and Corrected – Treasury Market New York Subway Rat Race

Two year Treasury note holders will be getting $32 billion in cash back next week. Like voracious New York subway rats scavenging for slices of pizza, they and they and a few piggyback riding momo players all went scurrying around trying to find replacement paper. These Wall Street rodents were looking for places to stash all that cold cash until the debt ceiling problem goes away. So both bonds and stocks rallied.

The Fed’s BS (Balance Sheet) Returned To Normal Last Week, Sort of

Bank Loans Ex Repo Lending (Click to enlarge)

The Fed’s liabilities settled down last week after a couple of weeks of wild fluctuations which resulted directly from the Fed encouraging banks to dress up their quarter end balance sheets with Fed RRPs. Now that those shenanigans are done until the end of December, a semblance of normalcy has returned to the balance sheet.