Courtesy of Lee Adler of the Wall Street Examiner
Here are just a few of the key bullet points in this report.
- Expiring CMBs will pour more cash into the accounts of Primary Dealers and other investors between now and the end of the month. There will be more paper expiring than new supply. Unless the Treasury issues more CMBs to absorb that cash, the system will be awash in cash
- The Fed has scheduled at least $70 billion in MBS purchase settlements for December 12-20. That cash will help set the markets up for a Santa Claus rally.
- Withholding tax collections continued to surge and are nearing the highest year to year gains of 2012. The tax data suggests accelerating economic activity and a continuation of the better than expected economic data releases in the weeks ahead.
- The massive special dividends that corporations are declaring to beat the fecal cliff will pour billions into the accounts of investors in the weeks ahead, just another factor that will add to market liquidity and demand for financial assets.
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