Fed QE and Treasury supply remain roughly in balance. The Fed is still funding most, if not all new issuance, either by direct purchase of Treasuries, or indirect funding via purchases of MBS. Meanwhile delayed tax collections are creating a July cash windfall for the Treasury. It’s all bullish for the next two weeks.
But then it gets different. Here’s why, and what to do about it.
Not a subscriber yet?
Get this report and access to all past and future reports risk free for 90 days!