Market expects Operation Twist in Sept
On Friday September 2, 2011, 2:44 pm
By Emily Flitter
NEW YORK (Reuters) – U.S. government bond investors see Federal Reserve action to boost the flagging economy as practically a done deal after Friday’s dismal…
And soon it will end. Then what? The Treasury calendar was heavy this week, with 3 and 10 year notes and 30 year bonds auctioned in addition to the weekly bill auctions. It got even heavier when the Treasury announced a surprise $15 billion cash management bill to tide the government over until June 15…
The markets stumbled through this week in spite of having plenty of POMO and $16 billion in Treasury bill paydowns on Thursday to stoke the speculative fires. But alas, a minor problem looms. The Treasury will issue $68 billion in net new debt on Monday that the market must pay for. The Treasury says it’s…
Weeks where the Treasury isn’t pounding the market with new debt are few and far between, and that should be bullish. Demand for short term paper seems insatiable with panic level bid/cover ratios on the short term bill auctions, and a record indirect bid on the 13 week bill. The market’s problem now has to…
The Treasury market had another fainting spell when the Treasury announced its refunding schedule for next week’s 3 and 10 year notes, and 30 year bonds. While there were no surprises, the market still didn’t like it. The Fed tried to absorb the selling with $15 billion in direct Treasury purchases over the last two…
The Treasury announced another CMB, along with the usual 4 week bill. The two will add a total of $40 billion in new supply to be auctioned tomorrow and settled Thursday. That should make for some ugliness. Making matters worse however, will be Wednesday’s announcement of 3 and 10 year notes and 30 year bonds…
