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 trading accounts of the Primary Dealers via its MBS purchase program. That number could increase modestly later this summer as a result of the latest mortgage refi mini boom driven…
Tag Archive for Trading Accounts
Lee's Free Thinking, Liquidity Trader, Professional Edition
The Bad News Is That Market is Celebrating What Was, Not What’s To Come
by Lee Adler • • 0 Comments
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…
Lee's Free Thinking, Liquidity Trader, Professional Edition
Fed Transparent Only If The “Facts” Are Bullish
by Lee Adler • • 2 Comments
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…
Lee's Free Thinking, Liquidity Trader, Professional Edition
Liquidity Stagnant as Fed Sits on Hands, US Market Health Dependent On European Bank Diarrhea
by Lee Adler • • 0 Comments
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…
Email Bulletins Archive, Liquidity Trader, Must Read, Professional Edition
Market Liquidity Flat With Hints of Weakening Ahead
by Lee Adler • • 0 Comments
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…
Liquidity Trader, Professional Edition
The Next Day Of Infamy
by Lee Adler • • 0 Comments
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…
Liquidity Trader, Professional Edition
Markets Know QE2 Is “Transitory”
by Lee Adler • • 0 Comments
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 trading accounts, bank purchases of Treasuries and Agencies, and foreign central bank purchases of Treasuries and Agencies are all bearish. The indicator showing net cash flowing from money funds into…
Liquidity Trader, Professional Edition
Introducing the Composite Liquidity Indicator
by Lee Adler • • 0 Comments
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. In the meantime other key indicators are turning more bearish, including large domestic bank trading accounts, bank purchases of Treasuries and Agencies, and foreign central bank purchases of Treasuries and…
Liquidity Trader, Professional Edition
S&P, Prostitution, and The Disappearance of Money
by Lee Adler • • 2 Comments
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 trading accounts and it did exactly what we expected it to. S&P threw a little glitch into things on Monday by putting the US on a negative watch. They probably…
Liquidity Trader, Professional Edition
Huge Cloud Hangs Over Treasury Market
by Lee Adler • • 0 Comments
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 money pumping into dealer trading accounts, you have the conditions for rallies. Since the schedules for both the Treasury supply and the Fed POMO are known in advance, it gives…
