Monday , May 6 2024
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TGA Stability

Summary:
Looks like the Treasury is using 'extraordinary measures' to keep the TGA stable as they juggle things under the Debt Ceiling...This is a good sign that these morons might actually be starting to figure it all out...What would have been a very large net disbursement from the TGA and associated price volatility inducing large increase in Reserve Assets in the banking system on Friday was offset by what appears to be Treasury not rolling over the exact amount of Intra-government Series Treasury securities and instead increasing issuance to the public to decrease Reserve Assets at the banks.TGA (and thus Reserve Assets) maintained complete stability and avoided what could have been at least a volatile price day if not yet another moron induced crash in Risk Asset prices... We might

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Looks like the Treasury is using 'extraordinary measures' to keep the TGA stable as they juggle things under the Debt Ceiling...

This is a good sign that these morons might actually be starting to figure it all out...

What would have been a very large net disbursement from the TGA and associated price volatility inducing large increase in Reserve Assets in the banking system on Friday was offset by what appears to be Treasury not rolling over the exact amount of Intra-government Series Treasury securities and instead increasing issuance to the public to decrease Reserve Assets at the banks.

TGA (and thus Reserve Assets) maintained complete stability and avoided what could have been at least a volatile price day if not yet another moron induced crash in Risk Asset prices...

TGA Stability


We might have dodged a bullet here...

Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

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