Tag Archive for Trading Accounts

The Bad News Is That Market is Celebrating What Was, Not What’s To Come

The cash generated by the ECB’s second big LTRO operation hit the US banking system last week. At the same time the Fed is still pumping cash into Primary Dealer trading accounts, and it just completed a big mid month cash infusion. This was all part of the master manipulators’ master plan, of which they…

Fed Transparent Only If The “Facts” Are Bullish

Liquidity indications have remained neutral over the two weeks since I last updated this report. Panic outflows from Europe boosting theUSsystem seem to have taken a breather, or been covered up, in the wake of the massive ECB liquidity operation just before Christmas. However, other indicators which had been bearish such as bank purchases of…

Liquidity Stagnant as Fed Sits on Hands, US Market Health Dependent On European Bank Diarrhea

Liquidity indications were mixed last week, with the Fed still not doing much while foreign central banks were net sellers (see Treasury update). Commercial banks started dumping Treasuries again, but their non-Treasury/non-GSE trading accounts did uptick against a bearish trend. The big plus was again bank inflows which surged massively. Meanwhile the FOMC statement was…

Market Liquidity Flat With Hints of Weakening Ahead

The composite liquidity indicator fell sharply last week. There was some distortion to the indicator the previous week when the Fed’s SOMA fell due to transactions outside dealer channels, but that was reversed in the latest data. Bank inflows were flat. FCB buying dropped back sharply from a record rise. Bank non-Treasury trading accounts fell…

The Next Day Of Infamy

The key liquidity indicators outside of the Fed itself, including commercial bank and foreign central bank purchases of Treasuries and Agencies, large domestic bank trading accounts of non fixed income assets, and equity mutual fund flows all remain weak. Only net cash flowing from money funds into the banking system is still in a bullish…