The Fed pumped $3.75 billion into the liquidity pool on Monday, adding $8.25 billion in overnight repos against $4.5 billion in expirations. The 5 day net rose to an add of $4.25 billion. That’s significantly less than the $11 billion in cash the Treasury pulled out of the market in settlements Thursday and today. This week they’ll suck out another $6 billion. Since the Fed has kept the System Open Market Account flat since last December, they have plenty of room to pump, should the need arise. Because the Treasury’s borrowing needs have been light so far, and the market has been so buoyant, the Fed hasn’t had to do much. Click here to download complete report in pdf format (Professional Edition Subscribers).Try the Professional Edition risk free for thirty days. If, within that time you don’t find the information useful, I will give you a full refund. It’s that simple. Click here for more information.
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