A strong upturn in foreign central bank (FCB) cyclical buying of US Treasuries made up for ongoing weakness in commercial bank market participation to propel the markets to strong gains last week. Light Treasury settlements, with a sizable paydown on Thursday also played an important role. The big turn in FCB buying was like the afterburners kicking in, adding fuel to the demand side in an atmosphere of thin supply. We were fully expecting the Treasury paydowns with their usual bullish effects, but the strength of the turn in FCB buying was a little surprising. Based on the indirect bid at last week’s Treasury auctions there’s some question as to whether it continued last week.
This cycle will be critical to the market’s performance both before and after QE ends. This report looks at that and the other critical inputs that will determine when the current rally comes to an end and what will follow.
Click here to download complete report in pdf format (Professional Edition Subscribers). including 22 pages of charts and clear, cutting edge analysis that you can use to gain an edge in the market. 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.
Stay up to date with the machinations of the Fed, Treasury, Primary Dealers and foreign central banks in the US market, along with regular updates of the US housing market, in the Fed Report in the Professional Edition, Money Liquidity, and Real Estate Package. Try it risk free for 30 days. Don’t miss another day. Get the research and analysis you need to understand these critical forces. Be prepared. Stay ahead of the herd. Click this link and get in RIGHT NOW!