September 17 – Wall Street Journal (Greg Ip): “Can words take the place of actions? The Federal Reserve hopes so. On Wednesday it issued a policy statement promising to get inflation above 2%. In their accompanying projections, officials indicated that…
Surprise, surprise! They pumped the money in but the market didn’t rise.
The Fed has been in the process of pumping $88 billion into Primary Dealer accounts this week in the form of its regular monthly MBS purchase settlements. Most of it is done. $22.7 billion of it will settle on Monday September 21. That will be the last MBS settlement until October 14-21.
Meanwhile, the Fed continues to purchase and settle Treasuries virtually every day. Over the past week that’s amounted to a total of about $37 billion. That means that a total of $103 billion in QE settled this week. That’s how much cash the Fed pumped into Primary Dealer accounts.
It didn’t matter. The stock market sucked gas. Bonds treaded water. It sure looks as though the Fed has somehow managed to magically peg bond yields just below 0.80% on the 10 year. The Treasury issued $104 billion in new coupon paper over the past week and that didn’t depress the market? It’s a miracle.
But isn’t it strange that the amount of QE and the amount of Treasury coupon issuance was virtually the same.
Uh… No.
But some other stuff sure as heck is, and you need to know about it.
Updating charts for the U.S. and EU27:Deaths per capita: the U.S. has overtaken the EU27 since May 18, and the trend for the U.S. continues to be worse than that for the EU27.EU27 death rate per capita has effectively flattened-out at around 303-…
Those who don’t see the fragmentation, the scarcities and the battlelines being drawn will be surprised by the acceleration of the unraveling.
The vast majority of Americans want to keep current Covid-19 restrictions in place moving forward according to a Hill-HarrisX poll published on Thursday. The poll of 3,758 registered U.S. voters found that 45 percent of respondents want to keep current…
Call me a cranky old man. OK. So that’s been true forever. But I’m not convinced yet that this is a bearish setup. At least in the very short run.
That said, if they can’t poke through 3365 in the early going in NY, I’m converting back to my nat…
A new survey has uncovered shocking levels of unawareness among young U.S. adults about the Holocaust. The research was carried out by the Conference on Jewish Material Claims Against Germany and it focused on millennial and Gen Z adults aged between 1…
Direct from the bowels of the NY Fed
As long time readers know I’m a big fan of $VIX technical structures and compression patterns. Often dismissed as non chartable I think we’ve successfully to put that argument to bed a […]
This is why inflation will rip everyone’s faces off: production will continue to stagnate no matter how many trillions the Federal Reserve prints and throws around.This is how market capitalism is supposed to work: consumers decide…