Lee AdlerEven before COVID-19 the trend was clear that the Treasury would need to keep borrowing money hand over fist. Now the deficit will explode. This…
With no prior announcement or clue, the Fed bought $37 billion in Treasury coupons from Primary Dealers on Friday. To pay for them it deposited $37 billion into dealer accounts at the Fed.
It was the largest single day POMO (Permanent Open Market Operation) purchase since the days of TARP and QE 1 in 2009.
It came without warning. I was so glued to the intraday live charts on Friday, I wasn’t even aware that the Fed had taken this emergency action until after the close.
We sure as hell saw the result. But this is only the beginning of this story.
Investors and leveraged speculators instead took the coronavirus panic straight to the bond market. Dealers, bless their little hearts, were long up the wazoo. Talk…
Suddenly the trend of Federal Withholding tax collections is in critical condition. Subscribers, click here to download the report. Get this report and access to…
The patterns on the charts of T-bills and the 10 year note are unprecedented. Something terrible has happened in the market. The Fed will have…
The market got way ahead of the amount of cash that the Fed was pumping into dealer accounts in February. That took a toll, and…
We knew that Not QE would fall well shy of Treasury issuance in February, and that that would be a problem for the markets. Subscribers,…
The February supply increase caused the bond rally to stop in its tracks. But that will change in March. Subscribers, click here to download the…
Update- A few minor corrections. Federal revenues soared in January. Spending soared more. A lot more. Despite all that stimulus, the tax data suggests that…
The pause in the growth of the Fed’s balance sheet over the past 6 weeks isn’t what the pundits are telling you. Some are saying…
Withholding tax collections are soaring. But despite that and the massive stimulus of skyrocketing government outlays and ever widening deficits, the ‘conomy is only so-so.…
I just discovered today that Liquidity Traders email system had malfunctioned and had stopped sending notifications to you last week. All posts were available here…