Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: orkrious who wrote (35018)	6/29/2005 2:34:02 PM
From: russwinter	Respond to of 110194

Monetary heads up, he is referring to Fed SOMA holdings, or permanents (from prior coupon passes). This would in effect be the reverse of a coupon pass. Kind of seems like they are trying to deal with the longer end here in preparation for the rate hike tomorrow. In otherwords, avoid even more yield inversion. Steve Northwood, Charle MacKay post 31-32: The Fed took the unusual action of reducing its holdings of 2 years notes by $1.3 billion. They held steady in the short term bills settling tomorrow, and did not buy any 14 day bills. So unless I am missing something, the Fed is sending a very clear message it is not only raising rates, but tightening the supply of money at the same time. Pretty big pileup of MB and agency repos the next two days. If the Fed wanted to target housing interest rates a little, this is their chance. bullandbearwise.com