dChan
Anonymous ID: cb6b6b March 16, 2020, 1:21 p.m. No.8440509   🗄️.is đź”—kun   >>0570 >>0754 >>0879

Market Report

Within a milisecond the breaker kicked in.

 

The FRBNY began the program(s) Outright QE and increases to the REPO amounts announded yesterday. All oversubscribed, with the first one having the largest % of subsmissions turned away. $40 B in Treasury's across the curve. Afer all of the below the funding markets are still locked up because the GC repo rate actually rose from 0.30% to 0.425%. Simply put, no matter how much the FRBNY tries it simply cannot soak up the massive amounts of paper debt in this system. The entire curve was lower but the short-end underperformed, flattening the yield curve. Index Volumes still elevated but lower than Friday and earlier ast week. Still not good on a double-digit down day. US Futures were halted limit-down overnight, and when cash markets opened, they were halted (down over 7%) before rallying all the way back up to the halted levels before slumping back… Losses accelerated into the close as the White House press conference began. Bank stocks were destroyed today after abandoning buyback plans. Credit markets suffered more carnage with IG spreads exploding higher and High Yield issues suffering moar blow-outs on spreads. This portends this part seizing up. The FRBNY simply cannot support the flood of shit here.

 

FRBNY Summary of Operations

Total Par Amt Submitted:$37,853 Total Par Amt Accepted (mlns) :$10,001

All the details here: https://www.newyorkfed.org/markets/pomo/operations

REPO Summary: toal of $164B with 3 operations and 1 Reverse REPO of $1.425B.

https://apps.newyorkfed.org/markets/autorates/temp

Securities Lending-System Open Market Account (SOMA) Total Par Amount submitted: $30,290B..Accepted :$20.135B

https://apps.newyorkfed.org/markets/autorates/SecLend

Agency Mortgage-Backed Securities Operations: $22.09B and both oversubscribbed

https://www.newyorkfed.org/markets/ambs/operations/results

 

Oil prices fell below $30 a barrel on Monday-and extending taht lose below $29-Cap#4. Top global oil producers Saudi Arabia and Russia have failed to agree on how to react as the reduction in global economic activity destroys oil demand, and have turned on each other to start a price war. The coming flood of supply from Saudi Arabia and other producers could result in the largest surplus of crude in history, said global information provider IHS Markit. Treasury Yields-Cap#3-dropped on the Sunday announcement and have been largely benign since then. Small slow rise but close with a small drop late in session. Gold/Silver prices were pressured also and took up some additional steam once the London portion of the mkt opened. The London Metals Exchange floated a turd earlier by saying "we may…have some issues because we can't transport the certificates we issue to the dealers in a lockdown…" Yea bullshit. - you can figure that one out.

https://www.bloomberg.com//news/articles/2020-03-16/lme-may-have-a-paper-filing-problem-if-u-k-goes-on-lockdown

 

This is rather significant

 

Foreign Central Banks Dump Treasuries For 17th Straight Month, Continue To Hoard More Gold

For the first time since June, China added to its US Treasury holdings in January (the latest month from TIC data). The total for China – the second-largest holder of U.S. government debt after Japan - rose $8.7 billion in January to $1.08 trillion. Japan remains the largest foreign holder with $1.21 trillion, as the value of its holdings rose $56.8 billion at the start of the year, the data showed.

 

https://www.zerohedge.com/geopolitical/central-banks-hoard-more-gold

 

and a late addition to this can be found here: See Cap #5 related to

 

https://www.macrotrends.net/2566/crude-oil-prices-today-live-chart

https://www.marketwatch.com/investing/bond/tmubmusd10y

https://www.kitco.com/charts/livegold.html