The New York Fed has long collected market information from its primary dealer trading counterparts and released these data in aggregated form to the public. Until recently, such data have only been available for broad categories of securities (for example, Treasury bills as a group) and not for specific securities. In April 2013, the Fed began releasing data on some specific Treasury issues, allowing for a more refined understanding of market conditions and dealer behavior.FRBNY — Liberty Street
Information on Dealer Activity in Specific Treasury Issues Now Available
Michael Fleming
You can see how volume peaked at 5/22/13 which coincides with the re-enforcement of the debt ceiling...
ReplyDeleteSince then we have not net issued any USTs and volume in the most active issues is going straight down...
The chart only goes thru mid-June I'd expect that over the 2 months since then the trend has continued down...
This is probably playing into the the decision to end the QE as the dealers volume is collapsing in this environment of no net issuance and the Fed taking 45b per month out of the inventories of previously issued USTs...
So the dealers are like: "Hey, we're dying here!" and Bernanke's out of control monetarism won't let him stop the QE in the face of the current economy...
Its kind of funny to watch these idiots (who are actually in the drivers seat NOT the childs car seat btw) operate!
The dealers cant make any "money" brokering USTs and the monetarists dont want to hear it as they would have to give up on their monetarist QE circle-jerk... What a moron-fest! LOL....