The Treasury completed the withdrawal of $185 billion from its rainy day Supplementary Financing Program (SFP) account at the Fed this week with a massive cash management bill paydown. Total paydowns of $55 billion settling on Thursday were enough to send short term bill rates down to near absolute zero as we had expected. It was also enough to goose the stock market on Thursday.
The markets took the huge refunding announcement in stride. They ignored, or were unaware that the government’s finances appear to be deteriorating at an accelerating rate. 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.