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Fun To Stay With The F-O-M-C – WSE Pro Fed Report

No surprise, the Fed Funds target ¼ point. It also added reserves for a second day (details at end of report). Next week the Treasury will sell 5 and 10 year notes in the amounts that had been forecast, but in a press release today the Treasury confirmed what we have foreseen and reported for weeks, that the seasonal Treasury paydowns that normally occur after April 15 will fall far short of their usual mark. Although the Treasury will inexplicably pay down a big chunk of long term debt next week, it will need to pound the market with a big wad of new T-bills to help pay for the ecostimulus package. With heavy Treasury supply due to vacuum up all funds in the short end of the money market rates should go higher in spite of the Fed’s actions. If the Fed wants to keep the lid on, they will need to do heavy liquidity injections. 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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