The Fed added another permanent on Monday, but drained $3 billion on balance. It announced a coupon purchase of just under $750 million, and added $11.75 billion in overnight repos but that was still insufficient to offset $15.5 billion in expirations. But fear not, the Treasury is coming with another paydown of $15 billion on the 4 week bills this week. And in spite of today’s drawdown, the Fed is probably still in year end pumping party mode. Click here to download complete report in pdf format (Professional Edition Subscribers).
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