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Information (and Supply) Overload – Professional Edition

Thursday is information overload day. After the market close, the Fed releases sketchy data on all of the week’s behind the scenes machinations, much of which it formerly published daily when it was using Open Market Operations daily. Now they no longer use OMO at all. Tonight’s data will include the H41 with all the alphabet soup programs including the critical PDCF, the all important foreign central bank custodial holdings, and information on bank reserve deposits and Treasury deposits at the Fed. The Fed will also reveal minimal data on what it secretly “bought” in the MBS buying program as well as the primary dealer status update, the money supply data and other tidbits of data. I will be updating and posting the data and my sense of where things are heading, tomorrow.

But first, we got some info today from the Treasury. It sold 5 year notes, and demand, particularly indirect bidding which is so important, was actually still very strong. Seeing Treasury yields soaring, market pundits claimed that the auction was “tepid”. What they fail to understand is the impact of the barrage of new supply, which we have been focused on all week. In the end, that wave of supply took its toll not only on the bond market, but stocks as well today. 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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