Jun 6, 2022·edited Jun 6, 2022Liked by Rudy Havenstein
Maybe an explanation here? According to Michael Ashton, on June 15, 2022, $38B of an old 3-year note will be maturing, while the Treasury is issuing $44B of "a new 3-year note that settles on June 15th," and it's likely the Fed will again bid on some of it?
"The Fed won’t bid for zero—they own $132bln of securities maturing in June, and they are only trimming $30bln per month from the portfolio, so their bid will likely just be a few billion less in each auction."
So perhaps the Fed's still an active buyer – maybe also on those issues of new 3- and 6-month T-bills – but is just bidding on a smaller proportion of each offering than it did previously?
Beyond that possibility, I have no idea whatsoever?
Nor am I at all clear on what happens when series like that older 3-year note mature, and the Fed still holds some of those at maturity? Do they get a cash payment or some sort of accounting IOU from the Treasury, or? If so, over time should we also expect to see fewer securities but also a larger 'cash or accounts receivable' balance on the Fed's balance sheet?
Ponzi gonna keep on Ponziing
Just normal operations. All is well.
And wallstreet continues to rally.
Where’s mainstream media?
FED's gotta right size the curve. Otherwise it will stay inverted. https://www.newyorkfed.org/research/staff_reports/sr913.html
Isn’t 10 B just a rounding error of cash lost in 1 penthouse hot tub at the Fed?
You know what they say, you can't taper a ponzi.
JPows gotta cap the rising 10y yield
Maybe an explanation here? According to Michael Ashton, on June 15, 2022, $38B of an old 3-year note will be maturing, while the Treasury is issuing $44B of "a new 3-year note that settles on June 15th," and it's likely the Fed will again bid on some of it?
https://www.investing.com/analysis/weekly-inflation-outlook-the-fed-paint-begins-to-dry-200625352
"The Fed won’t bid for zero—they own $132bln of securities maturing in June, and they are only trimming $30bln per month from the portfolio, so their bid will likely just be a few billion less in each auction."
So perhaps the Fed's still an active buyer – maybe also on those issues of new 3- and 6-month T-bills – but is just bidding on a smaller proportion of each offering than it did previously?
Beyond that possibility, I have no idea whatsoever?
Nor am I at all clear on what happens when series like that older 3-year note mature, and the Fed still holds some of those at maturity? Do they get a cash payment or some sort of accounting IOU from the Treasury, or? If so, over time should we also expect to see fewer securities but also a larger 'cash or accounts receivable' balance on the Fed's balance sheet?
If you had once lost the trust of the people you had to look after then, you have lost their respect forever. Abe Lincoln.