Menu Close
Posted in 1 - Liquidity Trader, Fed, Central Bank and Banking Macro Liquidity

Now That We’re Through the Month-end QE Shortage

We have a little tightness in the market at the end of every month. That’s because the Treasury issues a big wad of TP and the Fed isn’t there to absorb it. The Fed is just doing its piddly little $20 billion a week of Treasury purchases, and the Treasury is slugging the market with $100 billion or so of new supply.

Last week the actual numbers were worse. The last QE injection was $6 billion on December 23. They then didn’t do another one until Monday January 4, with $8.8 billion. Meanwhile, the Treasury plopped $164 billion in new supply on to the market on December 31.

We got through the deluge relatively unscathed. But there’s a lot to look forward to for the rest of the month.

The facts, figures, outlook, and strategy are reserved for subscribers. Click here to download the report.

Not a subscriber yet?

Get this report and access to all past and future reports risk free for 90 days! 

%d bloggers like this: