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.

Weakening Treasury Demand With Heavier Supply Spells Trouble For Stocks Too

Weaker demand for Treasuries coupled with heavy supply has resulted in a surge in yields over the past couple of weeks. The necessity of absorbing that new Treasury supply also contributed to a slowing in the stock market rally. The continued buying of stocks while Treasuries absorbed most of the liquidity leaves the stock market…

Waiting For The Other Made-In-China Shoe To Drop

Macroliquidity continues to rise at a slow pace, mostly on the strength of the Fed’s regular mid month settlements of MBS purchases. The trend is still slightly positive, but slow money growth is effectively tight money in a system excessively burdened with free interest carry trades. Under the circumstances, concurrent rallies in stocks and bonds…

New Fed QE–Quantitative Expropriation–and NIRPitrage Drive US Bull Stampedes

Europe Bank Deposits, ECB Assets and Deposits, and US Treasuries- Click to enlarge

This explication of quantitative expropriation is excerpted from the semiweekly examination of Fed balance sheet manipulation and banking system elevation, part of the Pro Trader Macroliquidity services. While US bank loan and deposit growth continues to go bonkers at annual growth rates of more than 8% for loans and around 6% for deposits, loan and…

Fed Plays Red Rover and Rolls Over

The Fed’s massive holdings of Treasuries acquired during QE began to mature this week. The Fed rolled over a wad of paper totaling nearly $32 billion. It will need to continue to buy that amount or more every two weeks to keep the market from being flooded with supply, which would depress not only Treasury…