Courtesy of Lee Adler of the Wall Street Examiner
Here are just a few of the key bullet points in this report.
- The Treasury announced and floated $25 billion in cash management bills (CMBs), as forecast by the TBAC. It was the second consecutive such weekly offering. It blunted the effect of the Fed’s addition of $36 billion in cash to Primary Dealer accounts via its forward MBS purchases.
- The $11 billion in cash above that absorbed by the CMB may have contributed to stabilizing stocks on Thursday and Friday. It also kept a bid under Treasury prices and pressure on bond yields
- The Fed will settle another $23 billion in MBS purchases on Monday and Tuesday. There will be a lot of cash around until the end of the month when the next big round of Treasury supply is due with an estimated $60 billion in new paper scheduled to settle.
There are seven more, covering Treasury yields, Primary Dealers, banks, and foreign central banks, bond fund flows, withholding taxes, Federal spending and more with illustrative charts and discussion.
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