The Fed pumped a massive $7.25 billion into the market on Wednesday, adding $7.25 billion in overnight repos against no expirations. The 5 day net rocketed to an add of $8.75 billion. This was almost certainly in reaction to the overnight earthquake in the CMO market as a result of Bear’s announcement that they had essentially lost everything in their two hedge funds. It was also a day that Uncle Ben was testifying on the Hill. Today’s add was just a little insurance that nothing too embarrassing would happen during the Chairman’s testimony. 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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