Today’s Fed action effectively drains funds from dealer accounts and from the financial markets and tomorrow will be more of the same.
Treasury issuance will go through the roof over the next 5 days while the Fed has decided to cut back its support. That’s a bad combination.
The S&P ES fucutures are up 90 points. That may not mean what you think.
The S&P ES fucutures are up 90 points. That may not mean what you think.
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?