Support the Wall Street Examiner! Choose your level of support to receive a free proprietary report as my thanks. Click the button below to see your options. Become a Patron!

Treasury Offering Net Supply Bulges – The Deluge Begins

The bulge in Treasury offering net supply issuance in the wake of the suspension of the debt ceiling, is starting.

Follow the money. Find the profits!

Liquidity is money. Regardless of where in the world that money originates, eventually it flows to and through Wall Street. So if you want to know the direction of the next big moves in stocks and bonds, just follow the money. Lee Adler's Liquidity Trader tracks and shows you the monetary forces that drive markets, like the daily real time Federal Withholding taxes shown in this chart. Follow the money. Find the profits! Try it for 90 days, risk free!

Let the deluge begin.

Liquidity moves markets!

Follow the money. Find the profits! 

Treasury Offering Net Supply

The US Treasury today announced $90 billion in 4 and 8 week bills to be auctioned Thursday. That includes $20 billion in net new supply to start raising the cash they need to repay the accounts they raided under the debt ceiling.

Commissar Trump signed the Rump Congressional deal to suspend the debt limit last week. Hundreds of billions in Treasury offering net new supply are coming within weeks. While that will eventually moderate some, the supply deluge will stretch as far as the mind can see, and beyond.

The new bills announced today settle August 13. Then $26 billion in net new coupon debt will settle August 15.

The pressure of new Treasury supply on the market will be relentless. We have known ever since the debt ceiling was imposed in March that this day would come and that it would be bad news for the stock market.

I analyze this trend 7 times monthly in Lee Adler’s Liquidity Trader. Start your 90 day risk free trial today!



Lee Adler

I’ve been publishing The Wall Street Examiner and its predecessor since October 2000. I also publish, and was lead analyst for Sure Money Investor, of blessed memory. I developed David Stockman's Contra Corner for Mr. Stockman. I’ve had a wide variety of finance related jobs since 1972, including a stint on Wall Street in both sales, analytical, and trading capacities. Prior to starting the Wall Street Examiner I was a commercial real estate appraiser in Florida for 15 years. I was considered an expert in the analysis of failed properties that ended up in the hands of bank REO divisions, the FDIC, and the RTC. Remember those guys? I also worked in the residential mortgage and real estate businesses in parts of the 1970s and 80s. I have been charting stocks and markets and doing analytical work since I was a teenager. I'm not some Ivory Tower academic, Wall Street guy. My perspective comes from having my boots on the ground and in the trenches, as a real estate broker, mortgage broker, trader, account rep, and analyst. I've watched most of the games these Wall Street wiseguys play from right up close. I know the drill from my 55 years of paying attention. And I'm happy to share that experience with you, right here. 

Leave a Comment

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