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…