The Fed pulled $0.5 billion from the market Monday by replacing $7.25 billion in expiring repos with $6.75 billion in overnight repos. The 5 day net dipped to a net add of $4.5 billion, well short of the huge $32 billion in new Treasury debt that settled Thursday and today. This week they start slap the market for another $23 billion in new cash. It’s amazing that the market is bouncing at all considering that it is taking a $55 billion supply hit in the course of a week. 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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