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May Tax Collections Were Super Bullish

Withholding tax collections boomed in May. Consequently, the US Treasury is flush with cash. This means that T-bill paydowns are likely to hit my previous estimate of $80-100 billion for June. It could be more than that, but the difference shouldn’t be enough to materially impact the market. The current estimates are bullish enough.  Non-subscribers, click here for access.

Subscribers, click here to download the report.

This report gives the details of the May tax windfall, what it means for the market, and how you can use that information in your trading and investment strategy.  Non-subscribers, click here for access.

Here’s a snip from last month’s summary of the review of April tax collections.   Non-subscribers, click here for access.

5/3/24 This is the second straight month of strong tax revenue. That means less supply. The usual April-May tax bulge cash cow could hang around through June, when the government sees a mini tax collection bulge from June estimated taxes. That could extend the T-bill paydown period into late June or early July before the well runs dry.  Non-subscribers, click here for access.

And that, my friends, will be a bullish influence between now and the end of the second quarter.  Non-subscribers, click here for access.

As I wrote in this update last month, “Cash doesn’t guarantee a bull stampede, but it means that the gates are open for them to easily run through.”  Non-subscribers, click here for access.

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Posted in 1 - Liquidity Trader- Money Trends, Fed, Central Bank and Banking Macro Liquidity
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