fwiw Mr. M is not out of business... yet. Here's his latest e-mail, and he updated his site this past Sunday for the remaining loyals<g>. I hope he's able to continue, i think it's some of the most insightful stuff out there, and for 45 bucks a year, it's a bargain.
Chart graphics will be updated, and a few notes added, at least until the end of January. You might check the letter page at the end of the weekends. I have not decided whether or not to completely abandon the effort that began in 1999, and I see no reason to rush a final decision. The only certainty is that I need a break. Prior to ever considering the monetary topic, I delivered regular markets analysis for a few years at another location on non-Japan East Asia and the Cone region of S.A. So, I have been at it for a while, and aside from my regular employment.
"We all work hard, Moto."
I know, I know.
Outstanding Fed repo is down by approximately $20 billion on a week ago. The stock market has responded accordingly. Central bank RP used to address recent seasonal demand for money have expired. It would be foolish to believe all was applied to the purchasing of children's gifts. The Fed is aware of this. A fifteen-day RP was conducted on Wednesday and is nothing more than a weaning device. An increase in the now standard 28-day RP from $4 billion to $5 billion can be considered much in the same light. Pressure for financing in the repo market on Wednesday was substantial, as was it on Thursday. A brief rally in the stock market was reflective of Wednesday's pressure. Though some of the pressure is undoubtedly due to the aforementioned expiration of term RP"s, there was also an active session in the Treasury market on Thursday, with prices of Treasury securities and the related futures finishing considerably higher on Thursday. Much of the price rally was technical and stimulated by mortgage-related convexity buying, the sluggishness of the equities markets, and additional rate-lock unwinds.
There should be a sharp rebound in unemployment claims next week. Retail sales on Tuesday, attended by plenty of spin.
MM |
