Saturday, August 10, 2019

TGA still low balance

Cut below showing in most recent DTS the still lingering effects of the "Debt Ceiling!" as TGA balance of $125b remains essentially at its recent low.

Next week we should see this balance start to increase as post "debt ceiling!" auctions took place this week with settlements scheduled for next week. Treasury has stated they want it up to $350b by end of September.  and then we should get the associated reduction in bank Reserve Assets... $225b reserve reduction implied IF Fed doesn't do something stupid for "liquidity pumping!" or wtf their deranged Art Degree scrambled egg brains can conjure up  ... BIG "IF" with these morons...

Still no discussion within the context of the recent chaos in interest rates on USTs that I can find anywhere that includes the "debt ceiling!" within... this is fascinating... you would think that even the "supply and demand!" morons would recognize that under the "debt ceiling!" their "supply!" of USTs would be negatively effected and even under that dogma, would perhaps cause (to them) an increase the price of these securities... so this is hard to understand with these people... perhaps they may be even more stupid than previously thought... SCARY!!!!!