The Fed drained $2 billion from the liquidity pool on Tuesday, adding $4 billion in overnight repos against expirations of $6 billion. Today’s drain, along with two Treasury auctions put some pressure on stocks early. Money rates were also ticking higher as a result of the huge increase in the size of the 4 week bill auction, for which FCB participation came up short. FCBs also cut $6 billion from their 3 year note rollover. Click here to download complete report in pdf format (Professional Edition Subscribers).
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