It was a busy day. The Treasury sold 3 issues, at which the indirect bid was generally strong, except for the small TIPS issue, which indirect bidders shied away from. The Primary Dealer bid on all three issues was absolutely enormous leading to huge bid/cover ratios on the shorter term stuff. That leads to the…
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Liquidity Trader, Professional Edition
Fed Puts US in the Breach, Again – Professional Edition
by Lee Adler • • 1 Comment
Today I got sick to my stomach when the Fed announced two more alphabet soup du jour programs. One program will involve the direct purchase of GSE and MBS paper by the Fed. that’s another $600 billion that the Fed will add to its books. This action was necessitated by the ending of the FCB…
