The futures were bouncing around like a pogo stick 15 minutes before the jobs report was posted.
Now is not the time to be nibbling.
The Fed is buying all the new Treasury supply with enough cash left over for the dealers to mount a defense. They aren’t.
The Fed has cut back its direct cash injections to Primary Dealers this week. So far it has bought approximately $92 billion per day in…
The US Treasury will bomb the markets with $288 billion in new supply over the next 7 days.
This supply hits a market where structures are still collapsing and burning despite the Fed’s rescue programs. Those programs only exacerbate and prolong the causes of this disaster:
The US Treasury has begun carpet bombing the markets with hundreds of billions per week in new supply. On the other side of the coin, the Fed is printing double or triple that. How’s that gonna work out for you?
Between today and Thursday, the US Treasury will pound the market with $194 billion in net new supply. The total since March 24 will be $283 billion. And it’s only the first week of it. That will have consequences.
Last week’s Fed intervention reminded me of The Charge of the Light Brigade.
The Fed bought $72 billion in Treasuries and $41 billion in MBS from Primary Dealers today. That’s a month’s worth of old QE in a…
The Fed is paying the Primary Dealers $110 billion a day. It’s hard to wrap your head around that. It’s as much QE as they did in a month under the original QE programs from 2009 to 2014. It better work.
