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

To: Mike Johnston who wrote (67017)	7/28/2006 3:19:01 PM
From: russwinter	Respond to of 110194

the Fed turns the spigots wide open.> Actually the Fed did not conduct a signal coupon pass throughout the whole big refinancing this week. Repos are at modest levels too. BOJ did a slight drain this week as well. The primary blast I saw, were FCBs taking 69% of the absurd TIPS security, and about the biggest purchase of agencies yet, $9.1 billion, so that's what did it, the heavy buying of trash. ECB raises rates next Thursday for what that's worth. Think I'd have to characterize this one as totally Pig Man generated liquidity. Pig Men are "taking" incredible amounts of credit piggybacking whatever "official source" buys the agency trash, completely the opposite of the "credit deflation" that gets thrown around.