The Fed and Treasury are inundating the market with cash this week. The total of Treasury paydowns and Fed purchases is $71 billion so far this week, with 2 more direct Fed purchases of Treasury paper yet to come. As a result of this deluge, Treasury yields and short rates are down, the dollar is down, and stock prices are firm. But beware, most of the cash is coming from the Treasury paydowns, and the Treasury will return to being a net borrower within a couple of weeks. 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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