The Fed maintained the status quo in its decision last week, which means that it will continue to pump $25 billion per month through the…
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…
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…
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…
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…
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…
Virtually all key liquidity indicators are negative as the markets hurtle toward the end of QE in a little over 3 weeks. Large domestic bank…
We still have a month of QE to look forward to and as long as that cash is flowing the markets will see a bid.…
The market sailed through a week of light Treasury supply with reduced POMO support. A big Treasury paydown this week put extra cash in dealer…
When there’s no Treasury supply and the Treasury actually puts cash back in the players’ pockets by paying down debt, adding that to the Fed’s…