Tag Archive for Us Government

Primary Dealers and Their Biggest Client Off The Hook For Now, What Next?

The composite liquidity indicator edged higher last week, continuing a slow but steady uptrend. In February and March, the indicator had accelerated upward away from its 39 week moving average. That acceleration has slowed, but the indicator continues to advance. With somewhat less abundant liquidity, the government and Primary Dealers have targeted that liquidity for…

Ring in the Holidays!

While market robots find ways to make the most options contracts expire worthless today, allow me to bring you some early holiday cheer, a new holiday carol to share with friends and family! I have bet that the Santa Rally won’t materialize this year. One factor I didn’t mention is liquidity: we are soon likely…

Yes, Ezra, There Is No Santa Claus

Ezra Klein asked (and answered) in the Washington Post today, “Why are the markets down today? No reason.” What would you expect him to say? He’s a mainstream media journalist, and therefore, by definition, clueless. I took a moment to answer his rhetorical question/answer with the real explanation (as I see it) in the comments…

Government Heads For Budget Collapse

The US Treasury, running short of cash, announced a $15 billion, 6 day cash management bill to carry it through to June 15 tax collections and settlement of new notes and bonds. The government is massively overshooting Treasury Borrowing Advisory Committee (TBAC) borrowing estimates issued in May. As I pointed out in the Treasury update…

Treasury and Fed Put Out Cash To Raise Fist Pumping Crowd for Ben

This is an extended excerpt from the Wall Street Examiner Professional Edition Treasury Report, normally for subscribers only. I thank our subscribers for allowing the publication of this extended excerpt, and for their longstanding support (Subscriber link at end). The market waltzed through a week of heavy Treasury auction supply, but it did not have…