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Price is the Final Arbiter 2/8/23


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Treasury is crushing the market with bill supply. It's a surprise. They are paying down intragovernmental debt that counts toward the debt ceiling and then turning around and issuing T-bills. They don't want rates to come down, apparently. 

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39 minutes ago, DrStool said:

Treasury is crushing the market with bill supply. It's a surprise. They are paying down intragovernmental debt that counts toward the debt ceiling and then turning around and issuing T-bills. They don't want rates to come down, apparently. 

That‘s really quite surprising. Yellen does not want to give additional fire power to the bulls. I would give Yellen a bit credit. She at least tried to kill those animal spirits when she was FED Head, whereas Bernanke always feeded the bulls. He was the worst. But given his academical work it was clear from the beginning what he‘d gonna do.  

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2 hours ago, DrStool said:

Treasury is crushing the market with bill supply. It's a surprise. They are paying down intragovernmental debt that counts toward the debt ceiling and then turning around and issuing T-bills. They don't want rates to come down, apparently. 

I suppose but I see no reason why they wouldn't want rates to fall since 95% of the populace knows the Fed is raising rates.   Falling or steady market rates  have nothing to do the fact that everyone knows the Fed is raising rates. This is the Alice In Wonderland state of our world. Everyone also knows that higher rates are required to fight inflation so the Fed has to fight inflation by raising rates. If rates happen to fall when they are raising rates, all the better.

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