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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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From: russwinter1/26/2005 4:49:37 PM
  Read Replies (2) of 110194
 
Despite $400 billion deficts, the Treasury (not the Fed) has taken it upon itself to place $38 billion in sweetheart loans (TIO)(*) to Boyz into the market. Notice the interest rate the UST charges for this subsidy at taxpayer's expense:
fms.treas.gov

So that's the float strategy for the time being. Might want to be a bit careful on dark side bets until most of these mature? I don't see how the Treasury can afford this for long however, they have bills to pay.
fms.treas.gov

1-28 $2 billion
2-1 $10 billion
2-2 $13 billion
2-3 $5 billion
2-4 $4 billion
2-8 $4 billion

(*)
Term Investment Option
Overview
The Term Investment Option (TIO) is an investment opportunity offered to Treasury Tax & Loan (TT&L) participants. Treasury will periodically auction excess operating funds to participants for a fixed term at a rate determined through a competitive bidding process.
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