Interesting week in printing press land. No US Fed coupon passes, and virtually no debt monetization (+92). On the otherhand an enormous +8,430 in foreign custodials purchases. Foreign CBs have bought $6.593 billion in agencies the last two weeks. In aggregate this is below average "liquidity" creation. Taking coupon passes X 9 + Fed hold outright+ custodial, the liquidity spigot looks like this:
10-20 +28,621
10-27 +28,958
11-3 +14,403
11-10 +6,947
11-17 +18,990
11-24 +16,293
12-1 +29,586
12-8 +37,486
printing press peak avg proceeding eight weeks +22,665
12-15 -1,212
12-22 +4,093
12-29 +5,736
1-6 +8,522
Heroin withdrawal, avg proceeding four weeks +4,891, Y2K (FNM?) redux , and trying to get back to trendline: about +12.2 billion a week?
Temps have been used as partial offset, large expiration was not replaced today.
bullandbearwise.com
Securities lending also dropping.
ny.frb.org |
