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

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…

Somebody Lit The Tinder

The markets have been stable while new Treasury supply was very light, as the Fed was settling $31 billion in MBS purchases this week. Since nothing moved much, it suggests that the Fedbucks have not been deployed yet. This could be a tinderbox to the upside. Stocks have been the most loved asset, so they…