Tag Archive for Liquidity

Treasury Pays Down, FCBs Buy, Fed Drains – Professional Edition

The Treasury paid down debt this week. Partly as a result of that, the indirect bid at the auctions was huge, signaling that foreign central banks continue to buy Treasuries at a breakneck pace. Meanwhile, spreads between GSE paper and Treasuries continued to widen at the same time as Treasury yields headed sharply higher. Once…

Renewed Signs of Stress – Professional Edition Fed Report

The Treasury completed its auctions for this week. A trend of slightly reduced indirect bids continued. While the changes are small this could be the first small sign that investors and foreign central banks are beginning to experience a loss of the firepower and will necessary to continue to accumulate Treasuries at the rate necessary…

FED SHRINKS BALANCE SHEET!

The Fed shrank its balance sheet by $125 billion this week. How ya like dem apples! I will go through the H41 line by line and have a complete analysis in the next Professional Edition Fed Report to be posted either tonight or tomorrow AM. Try the Professional Edition risk free for thirty days. If,…

Fed Report

There were no Treasury auctions today. The Treasury announced next week’s 13 and 26 week bill auctions today, a day earlier than usual due to the holiday. Both will be for $28 billion. Both are $1 billion more than the TBAC estimate made on October 31. Both are $1 billion more than the amounts expiring…