Tag Archive for Fcbs

Hit With Big Withdrawals, Fed Sells Assets, Borrows Cash

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…

4 Signs To Look For In Treasuries, The Dollar, and Federal Tax Collections, and FCBs

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.

Checkmate

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…

Kind Of Bearish

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…

Financial System Warning Signs Abound- Professional Edition

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…