With a tidal wave of cash coming in to Federal Government coffers from record tax collections the markets will continue to have the benefit of Treasury paydowns boosting dealer and investor cash levels.
Withholding tax collections through this week have shown strong growth and individual tax collections through April 20 have been at blockbuster levels. But are corporate taxes a sign of storm clouds gathering on the horizon?
The ECB’s QE program isn’t giving the US Treasury market the lift that past ECB expansions have.
Bank loans and deposits continue to soar as banks lend more while Fed’s balance sheet stays flat. Here’s why.
The composite liquidity indicator continues to mark time as the Fed’s balance sheet remains flat. Other components have been strong in recent weeks.
Treasury paydowns, Fed MBS settlements, massive tax receipts, and massive foreign central bank buying are combining to boost market liquidity. The only question is where it will be deployed. Today it was bonds.
The Federal Government’s withholding tax collections last week grew by +5.2% year over year. The Monthly Treasury Statement for March also confirmed the strong gains that the daily statements had shown in real time. Here’s what that means for the economic data ahead.
While the Fed’s balance sheet flattens, bank lending and money supply measures continue to skyrocket.
Macroliquidity indicators have been in a pause, but that could end this week as the Fed settles a pile of MBS purchases over the next week and announces a record amount for the next month. But the seeds of destruction may lie therein. This report explains why, and what to expect from the markets over…
The markets now have the benefit of Treasury paydowns boosting dealer and investor cash levels till the end of May. Recent indications suggest that the cash windfall may be even bigger than initially forecast. Here’s what that could mean for the markets.