Treasury Supply and Demand Pro Trader

Analysis of new Treasury supply and major demand market segments to estimate market liquidity impacts for bonds and stocks. Available to subscribers to the weekly Treasury Supply and Demand Weekly. Click here to subscribe. Subscribers, click the post headline to access reports.

Negative Supply and Demand Factors For Bonds Are Just As Bad For Stocks

Last week the Treasury cut back the supply of the 4 week bills to $55 billion from $60 billion. Today they just announced another cut, to $45 billion. As a result of continuing massive demand for short government paper, the 4 week bill rate broke down from its range and closed at 18 basis points…

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…

Fed Plays Red Rover and Rolls Over

The Fed’s massive holdings of Treasuries acquired during QE began to mature this week. The Fed rolled over a wad of paper totaling nearly $32 billion. It will need to continue to buy that amount or more every two weeks to keep the market from being flooded with supply, which would depress not only Treasury…