Comments on: FED: Running Out of T-Bills http://www.aleablog.com/fed-running-out-of-t-bills/ Alea Jacta Est Fri, 25 Jul 2008 01:27:29 +0000 http://wordpress.org/?v=2.6 By: jck http://www.aleablog.com/fed-running-out-of-t-bills/#comment-1150 jck Thu, 08 May 2008 20:49:53 +0000 http://www.aleablog.com/?p=870#comment-1150 Regarding the post at Interfluidity, the drop in T-bills, treasury notes and treasury bonds held stands at $ 247 bn, this is the result of the sterilization to make room for the TAF, discount window borrowings and the PDCF so the balance is $ 542 bn, this will drop by about $ 50 bn to accommodate the TAF increase [if it is to be sterilized , most likely it will]. The TSLF doesn't need to be sterilized [it's a swap] and the loaned T-bills/notes/bonds paper stays on the fed balance sheet. Regarding the post at Interfluidity, the drop in T-bills, treasury notes and treasury bonds held stands at $ 247 bn, this is the result of the sterilization to make room for the TAF, discount window borrowings and the PDCF so the balance is $ 542 bn, this will drop by about $ 50 bn to accommodate the TAF increase [if it is to be sterilized , most likely it will].
The TSLF doesn’t need to be sterilized [it's a swap] and the loaned T-bills/notes/bonds paper stays on the fed balance sheet.

]]> By: jck http://www.aleablog.com/fed-running-out-of-t-bills/#comment-1149 jck Thu, 08 May 2008 20:36:24 +0000 http://www.aleablog.com/?p=870#comment-1149 I am talking about <b>T-Bills</b>, not treasury notes or treasury bonds. My number is: T-bills held last week [$70 bn according to the may 1st H.4.1] minus what was rolled off [$5 bn] and what was sold outright yesterday $ 10bn. Today H.4.1 shows $65 bn T-bills held because yesterday's outright sale of $10 bn settles today and the H.4.1 is as of last night, so my number is right ON. H.4.1 are here: http://www.federalreserve.gov/releases/h41/ I am talking about T-Bills, not treasury notes or treasury bonds.
My number is:
T-bills held last week [$70 bn according to the may 1st H.4.1] minus what was rolled off [$5 bn] and what was sold outright yesterday $ 10bn.
Today H.4.1 shows $65 bn T-bills held because yesterday’s outright sale of $10 bn settles today and the H.4.1 is as of last night, so my number is right ON.
H.4.1 are here:
http://www.federalreserve.gov/releases/h41/

]]> By: fredw http://www.aleablog.com/fed-running-out-of-t-bills/#comment-1148 fredw Thu, 08 May 2008 20:06:51 +0000 http://www.aleablog.com/?p=870#comment-1148 How do you come to this number ? My back of the envelope calculation was about 60 percent of their treasuies were loaned or otherwise committed. Similarly , Interfluidity has a post on this subject and notes 275 remains in uncommitted treasuries held by the Fed. thanks in advance for your feedback. How do you come to this number ? My back of the envelope calculation was about 60 percent of their treasuies were loaned or otherwise committed. Similarly , Interfluidity has a post on this subject and notes 275 remains in uncommitted treasuries held by the Fed. thanks in advance for your feedback.

]]> By: William Kidder http://www.aleablog.com/fed-running-out-of-t-bills/#comment-1147 William Kidder Thu, 08 May 2008 16:20:19 +0000 http://www.aleablog.com/?p=870#comment-1147 T-Bills And CPMKTL Liquidity Index In April, the CPMKTL liquidity instruments declined for the first time in nine months, down 1.94% to $7.2 trillion and now account for 22.00% of the investment grade U.S.capital markets. This decline was largely due to activity of short term federal agency bonds and Treasury bills. The market for short-term federal agency bonds decreased by almost 10% with nearly all of the decrease due to bonds that were called or matured in April. The market for Treasury bills dropped by 6.5% to back below $1 trillion despite the Federal Reserve Board further decreasing its holdings of Treasury bills. The Fed now holds less than 10% of the outstanding Treasury bills. From 2003 to end of 2007, the Fed typically held 25% to 30% of Treasury bills. T-Bills And CPMKTL Liquidity Index

In April, the CPMKTL liquidity instruments declined for the first time in nine months, down 1.94% to $7.2 trillion and now account for 22.00% of the investment grade U.S.capital markets.

This decline was largely due to activity of short term federal agency bonds and Treasury bills. The market for short-term federal agency bonds decreased by almost 10% with nearly all of the decrease due to bonds that were called or matured in April.

The market for Treasury bills dropped by 6.5% to back below $1 trillion despite the Federal Reserve Board further decreasing its holdings of Treasury bills. The Fed now holds less than 10% of the outstanding Treasury bills. From 2003 to end of 2007, the Fed typically held 25% to 30% of Treasury bills.

]]> By: Alternative Investment Forum » Blog Archive » THE FINTAG NEWSLETTER @ 08 May 2008 http://www.aleablog.com/fed-running-out-of-t-bills/#comment-1145 Alternative Investment Forum » Blog Archive » THE FINTAG NEWSLETTER @ 08 May 2008 Thu, 08 May 2008 08:45:29 +0000 http://www.aleablog.com/?p=870#comment-1145 [...] alea says ” FED: Running Out of T-Bills “ [...] [...] alea says ” FED: Running Out of T-Bills “ [...]

]]> By: David Merkel http://www.aleablog.com/fed-running-out-of-t-bills/#comment-1142 David Merkel Wed, 07 May 2008 18:21:00 +0000 http://www.aleablog.com/?p=870#comment-1142 Maybe they could buy some of the one-year bills that the Treasury will be offering to fund its growing gap. Oh, wait, they don't buy T-bills, they only sell them these days. Last open market purchase was 5/3/2007. No wonder the monetary base looks anemic, especially for a loosening cycle. Maybe they could buy some of the one-year bills that the Treasury will be offering to fund its growing gap. Oh, wait, they don’t buy T-bills, they only sell them these days. Last open market purchase was 5/3/2007. No wonder the monetary base looks anemic, especially for a loosening cycle.

]]> By: Wednesday links: times are tough « Abnormal Returns http://www.aleablog.com/fed-running-out-of-t-bills/#comment-1141 Wednesday links: times are tough « Abnormal Returns Wed, 07 May 2008 17:22:47 +0000 http://www.aleablog.com/?p=870#comment-1141 [...] The Fed is running out of T-bills. (Alea) [...] [...] The Fed is running out of T-bills. (Alea) [...]

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