The Treasury again ran short of cash and yesterday it announced that it would sell $21 billion in 10 day CMBs, which it auctioned today. Next week’s calendar is gargantuan. New supply will total $61 billion, with $28 billion settling on April 8, and a net of $33 billion that will settle on April 15. That’s there’s any new supply settling that week is virtually unheard of. Prior to the onset of the financial crisis and recession, the April 15 week always brought with it paydowns of Treasury debt enabled by the massive wave of cash coming in via tax collections. That excess cash typically imparted a bullish flavor to the second half of April. 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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