The Treasury announced next week’s auction schedule on Thursday. The combination of big new supply in the intermediate and longer maturities, along with the market’s awareness that the Fed will be gradually cutting back and ending its longer term Treasury purchase program over the next 7 weeks, rocked the Treasury market on Friday. The pundits naturally blame the “green shoot” unemployment data, which is really just an excuse. The real issue is that the market is facing the prospect of life without the Fed subsidy. 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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