Macroliquidity Monthly

Analysis of the major forces of macro liquidity that drive markets for monthly subscribers. Click here to subscribe. Subscribers, click the post headline to access reports.

Macroliquidity Growth Accelerates, Lifting Stock Prices and Market Sentiment

Macroliquidity rests just below the highs set a few weeks ago as the Fed is in the usual hiatus between its regular monthly MBS settlements that occur around mid month. The markets have fended quite well thank you without the Fed’s help and must continue to do so until mid April. Since the middle of…

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…

New Fed QE–Quantitative Expropriation–and NIRPitrage Drive US Bull Stampedes

Europe Bank Deposits, ECB Assets and Deposits, and US Treasuries- Click to enlarge

This explication of quantitative expropriation is excerpted from the semiweekly examination of Fed balance sheet manipulation and banking system elevation, part of the Pro Trader Macroliquidity services. While US bank loan and deposit growth continues to go bonkers at annual growth rates of more than 8% for loans and around 6% for deposits, loan and…

Fed Balance Sheet Semi Tight as Treasury Pulls Cash From Markets

With Treasury paydowns ending that week, and the Treasury returning to the market to claw back big chunks of the cash it had injected into dealer and other accounts over the past couple of months, next week’s Fed H41 data should start to reflect that. The Treasury account balance should grow, and bank reserve accounts…