Menu Close
Posted in Lee's Free Thinking, Liquidity Trader, Professional Edition

Treasury and Primary Dealers Shake The Stock Market Tree When Needed

The markets get a gift in the coming week. Depending on how strong tax receipts are, the Treasury will pay down as much as $48 billion in expiring short term bills on Thursday. That’s cash that will come back to holders of the paper. They’ll have to put it somewhere. This is a normal feature of tax week, and some of that cash usually flows toward stocks.

What appeared to support the bond market last week were some phony ginned up misses in the economic data. That was an excuse to dump stocks and scare money into Treasuries just at a time when the Treasury had to both roll over old paper and sell new paper totaling $156 billion. Is it my imagination or does the “bad” news, both real and imagined, almost always seem to come in the weeks when Treasury supply is heaviest? It would make an interesting academic study. My impression from observing these things closely for the past 10 years is that, call it “conspiracy,” or call it “metaphysics,” this is how the markets seem to function. The government and Primary Dealers need to keep bond yields down—they find ways to accomplish that. If it means they need to shake the stock market tree to do it, then that’s what happens.

Get the full sized chart with analysis in the Professional Edition Click here to download complete report in pdf format (Professional Edition Subscribers) including 26 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. 30 day risk free trial for new subscribers. Click here for more information.

3 month subscription to the Wall Street Examiner Professional Edition, Money-Liquidity-Real Estate package, renewing automatically unless canceled.

Price: $89.00

By clicking this button, I agree to the Wall Street Examiner’s Terms of Use.

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 begin your risk free trial NOW!

Enter your email address in the form to receive email notification when Professional Edition reports are posted.

Related Posts

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.