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

System Awash in Cash, But Dealers and Investors Sit On It – Professional Edition

The system remains awash in liquidity, but rather than committing it to stocks, those with the cash have lately either been buying Treasuries or parking the funds in the Fed’s tri party overnight reverse repo Temporary Open Market Operations. Table of Contents Macroliquidity Component Indicators Fed Cash to Primary Dealers Foreign central bank purchases US…

Travel Week Professional Edition Publication Schedule

I will be traveling from Thursday to Tuesday. The Market Update will be published Wednesday night, late. The posting schedule for that report from Thursday to Monday is uncertain. Please check the website for announcements. The Market Update will resume a regular schedule on Tuesday evening, January 21. The Treasury report will not be published…

Treasuries Suddenly Get All the Love as Liquidity Continues to Surge – Professional Edition

The tide of liquidity continues to surge, but suddenly it has been diverted away from stocks and into Treasuries. The current (temporary) shortage of Treasuries in the face of a surfeit of cash has caused Treasuries to rally. That sends a false signal to traders that there’s something “wrong” with the economy that wasn’t wrong…

Liquidity Trumps All – Professional Edition

Liquidity trumps all. The Fed tapered in December and the market rallied, to everyone’s surprise but ours. We knew that the Primary Dealers were loaded with cash and the deck was stacked for exactly the outcome that we got. The second part of that outlook was that liquidity would remain strong in January, leading to…