Extended excerpt from the Executive Summary. The Treasury had a very light calendar and easy skating last week, but the calendar will be heavier in the week ahead, with notes and bonds being offered in addition to the regular weekly bill auctions. The notes and bonds will settle on Friday. It’s unusual for them to…
Tag Archive for Fcbs
Charts, Economics, Email Bulletins Archive, Liquidity Trader
Hit With Big Withdrawals, Fed Sells Assets, Borrows Cash
by Lee Adler • • 7 Comments
The Fed was hit with withdrawals of $83.3 billion last Wednesday, the largest withdrawals from its deposit accounts that were not associated with quarterly tax payments since February of 2009. $7 billion of that was the net cash transferred to the US Treasury from its note and bond sales less outlays. The Fed still had…
Charts, Economics, Email Bulletins Archive
Foreign Central Banks Have Left the Building
by Lee Adler • • 0 Comments
Tracking foreign central bank (FCB) holdings of US Treasury and Agency (Fannie, Freddie, and minor government agencies) paper has been one of the most important lines of inquiry in my analysis of market liquidity for the past 9 years. This information is available virtually in real time each week in the Fed’s weekly H41 report.…
Liquidity Trader, Professional Edition
4 Signs To Look For In Treasuries, The Dollar, and Federal Tax Collections, and FCBs
by Lee Adler • • 0 Comments
Stocks rallied and Treasuries held their own in the past week as the market faced no pressure from new Treasury supply, and foreign central banks (FCBs) took a break from their recent pattern of dumping their Treasury holdings. This report tells what to look for next week that will tell us what the future holds.
Economics, Email Bulletins Archive, Liquidity Trader
Not Merry Twistmas
by Lee Adler • • 0 Comments
Reposted from an email bulletin- I’m finally back up to speed after my trip back from my summer base in Canada to base camp FL. Yesterday I posted a Wall Street Examiner Professional Edition Fed Report update. This is an excerpt from that report. The Fed’s security holdings rose in the week ended 10/12/11 by…
Charts, Economics, Email Bulletins Archive, Liquidity Trader
Threads In A Foreboding Tapestry
by Lee Adler • • 1 Comment
Two weeks ago I began to report to subscribers of the Wall Street Examiner Professional Edition Fed Report that foreign central banks (FCBs) had begun to engage in unprecedented levels of disgorgement of their massive holdings of US Treasury and Agency paper. Prior to this year, the FCBs had typically absorbed the equivalent of 25%…
Liquidity Trader, Professional Edition
Checkmate
by Lee Adler • • 0 Comments
During QE2, the Fed’s purchases of Treasuries covered virtually 100% of new Treasury supply, freeing up cash that allowed the Primary Dealers (PDs) to speculate elsewhere. With the Fed now absorbing almost none of the new paper, the market faces an additional problem, and it is a huge one. Foreign central banks (FCBs) are now…
Liquidity Trader, Professional Edition
Kind Of Bearish
by Lee Adler • • 0 Comments
The following is the summary lead-in to this week’s Wall Street Examiner Professional Edition Treasury Update. The subscriber link to the full report is below. A massive wave of panic buying has sent Treasury yields plunging to record lows. Data shows foreign central banks were net sellers in recent weeks, continuing a trend of weakening…
Economics, Liquidity Trader, Professional Edition
Fed Gets To Skate On Thin Ice In April
by Lee Adler • • 2 Comments
Both banks and foreign central banks (FCBs) have normal buying cycles, and this week’s evidence suggests that both are just past the peak of those cycles. In addition, because of Japan’s predicament, FCB buying is for the foreseeable future likely to be well below the necessary levels to keep levitating stocks. Add to that the…
Liquidity Trader, Professional Edition
Financial System Warning Signs Abound- Professional Edition
by Lee Adler • • 2 Comments
The Fed deposited $21.6 billion in cash into Primary Dealer trading accounts in the holiday shortened week ended Friday. At the same time, FCBs pulled $2 billion out of the market pool. They aren’t cooperating with the Fed to the degree necessary to keep the champagne music machine blowing bubbles. Meanwhile banks built up their…
