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

Was This As Good As It Gets For Treasuries?

Treasuries resumed their furious rally this week. The question is how? Foreign central banks are not buying, Primary Dealers have been on the fence, and in Europe, the banks paid back $148 billion in the ECB’s LTRO loans yesterday that were partly used to fund a Treasury carry trade. Here’s the answer, and what it…