The Fed did an apparent prop job this morning, pumping in astounding $11.25 billion in net new liquidity. It was not enough to prevent the stopout rate from soaring to 4.62, above the 4.50 target. The Fed added that amount in overnight repos against zero expirations. It appeared to be intended to shore up a reeling stock market, but the 11 AM Treasury auction announcement put the Fed’s add in a different light. 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.
