We haven't seen the Fed take money OUT of the system for awhile. Today they drained $5.25 billion overnight while simultaneously adding $3 billion for two weeks! Fine-tuning at its best...
Deal Date: Thursday, April 26, 2007
Delivery Date: Thursday, April 26, 2007
Maturity Date: Friday, April 27, 2007
Type of Operation1: Reverse Repo
Settlement: Same Day
Term of Operation2: 1 Day
Operation Close Time: 09:40 AM
Total $5.250 billion
Deal Date: Thursday, April 26, 2007
Delivery Date: Thursday, April 26, 2007
Maturity Date: Thursday, May 10, 2007
Type of Operation1: Repo
Settlement: Same Day
Term of Operation2: 14 Days
Operation Close Time: 08:30 AM
Total $3.000
4 comments:
I give up trying to understand. Maybe they are just bored and wanted to keep the staff busy!
Hello Deborah, Tom,
The record tax receipts are likely screwing up these numbers. It has been in the news that the Treasury has been pumping the markets with temporary loans, for first 3 weeks in April something like $54 billion. This could account for money supply unusual activity. Regards, Jim P.
Reverse Repos
5/2/07 = 5.75B
4/27/07 = 6.5B
4/26/07 = 5.25B
the last one before that was
1/9/04 = 2.25B
It sure has been awhile.
what do you make of it?
Dear Tom, Jim and Anonymous,
The Fed is probably crazy like a fox, but I sure don't understand their activity! Temporary loans (per Jim) certainly increase the money supply.
At least the curve is less inverted as a result of these loans!
Deb
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