Menu Close

Late To the Party- WSE Pro

The Fed threw more fuel on the fire with a net add of $8.25 billion as the Treasury continued a second day of massive paydowns with $32 billion in net payoffs of Cash Management Bills. The Fed added $8.25 billion in weekend repos against no expirations. The pigmen let out another “Huzzah!” and shouted, “Let’s get run a gap, crap, and trap!” All that excess cash exploded into the market in the premarket, but by 11 AM it was exhausted, as most of it had been committed in Thursday’s buying orgy. Bonds had a huge spike on the CPI news, helped along by the cash spewed out by the Treasury, and the fact that for the time being there wasn’t enough TP to absorb it all. Again, the demand was exhausted within minutes. But fear not, the Treasury is coming with another paydown next week which Steve Northwood estimates will be around $11 billion on the 4 week bills. Finally, the Fed has come to its annual year end pumping party. It was late there’s still time to get caught up. Click here to download complete report in pdf format (Professional Edition Subscribers).

Try the Professional Edition risk free for thirty days. Unbundled subscription service packages starting from as low as $39! Click here for more information.

Join the conversation and have a little fun at If you are a new visitor to the Stool, please register and join in! To post your observations and charts, and snide, but good-natured, comments, click here to register. Be sure to respond to the confirmation email which is sent instantly. If not in your inbox, check your spam filter.

This site uses Akismet to reduce spam. Learn how your comment data is processed.