tyb
Market Report
S&P Futures Explode 40 Points Higher In One Tick On $7 Billion Market On Close Imbalance
The Dow Jones Industrial Average .DJI rose 1,351.62 points, or 6.38%, to 22,552.17, the S&P 500 .SPX gained 154.51 points, or 6.24%, to 2,630.07 and the Nasdaq Composite .IXIC added 413.24 points, or 5.6%, to 7,797.54.
How do you make sure that an extremely illiquid market trades like a penny stock? By accumulating enough shares to build up a market on close imbalance of over $7 billion, and wait for the exchange to disclose what the MOC was. We learned that there was a $7 billion market on close imbalance, most likely the result of the previously discussed $850 billion in month and quarter end pension fund rebalance. Since the Federal Reserve slashed interest rates and introduced a raft of emergency measures two weeks ago to combat the economic fallout of the coronavirus pandemic, four-week T-bills have consistently traded at rates below 0% in the open market. But, unlike other governments such as Germany or Switzerland, existing rules prevent the U.S. Treasury from actually issuing debt with negative yields at auction.
The conundrum has the potential to cost U.S. taxpayers billions of dollars if rates stay lower for longer, particularly as the U.S. is poised to issue more debt after the Senate passed a $2 trillion rescue package this week. For example, on Thursday, the Treasury sold $60 billion of four-week bills at the minimum allowed rate of 0%. But because the current market rate is roughly -0.14%, dealers can turn around and sell those bills at a premium and pocket an immediate windfall. In this case, about $7 million. That might not sound like much, with over $2.5 trillion of bills outstanding, it can add up very quickly.
see cap#4
The FRBNY bought $622 billion in Treasury and MBS, a staggering 2.9% of US GDP, in just the past five days-but they are not alone…the BoJ is doing it but not having very much success.
(as a reminder the BOJ now owns more than 100% of Japanese GDP in JGBs) and is "causing havoc" in Japanese money markets as the Bank of Japan continues to buy while dealers refuse to sell. Japan's repo market, which traditionally connects holders of bonds with investors looking to borrow them, jumped to a record Tuesday (although they since retreated on Wednesday) because as Bloomberg notes, "the introduction of cheaper, more regular dollar-swap auctions has generated huge demand from U.S. currency-starved dealers who are keeping their JGBs to put them down as collateral." So here is what the math looks like now that the Fed has launched enhanced swap lines with central banks such as the BOJ, allowing local entities to obtain dollar funding at much lower rates: in last week’s first round of the Fed’s revamped dollar-swap auctions, banks borrowed greenbacks for about 3-months at 0.37%, a massive discount to the near 2% it would cost them in the currency swap market. $32 billion was alloted in the first operation. In other words, we may have finally hit a point where the market becomes self-stabilizing, as the very mechanism that central banks used to nationalize capital markets results in so much distortion that market participants no longer have an incentive to use it. In short, QE in Japan, which was first among the developed nations to hit the zero bound (and drop below it) and the first to exponentially ramp up bond purchases, is now on the verge of failure.
See Cap#3
https://finance.yahoo.com/quote/%5EDJI
https://www.kitco.com/charts/livegold.html
https://www.zerohedge.com/markets/sp-futures-explode-40-points-higher-one-tick-7-billion-market-close-imbalance
https://www.zerohedge.com/markets/bojs-qe-verge-failure-funding-arb-means-nobody-wants-sell-kuroda
one of them SHADY55 was already up. If flew by Jekyll Island. the others did not show up. FWIW
I don't think it was real but is was fun getting a boner with the Jekyll island pass by.
that didn't stop this crew. When you have access to the plates and paper it's easy. Don't forget these asshats put a $4 quadrillion lean on our country to boot.
Mnuchin Forms Task Force to Confront Mortgage Firms’ Liquidity
Treasury Secretary Steven Mnuchin said he has formed a task force of U.S. financial regulators to deal with the liquidity shortfall that mortgage service firms may face as swaths of homeowners stop making their monthly payments. Mnuchin said he’s asked the task force members to give him recommendations by March 30 on how the U.S. can address a potential cash crunch for servicers, who collect money from borrowers monthly and facilitate payments to investors in mortgage bonds.
He made the remarks during a Thursday call with members of the Financial Stability Oversight Council, a panel set up after the 2008 financial crisis that monitors threats to the U.S. economy. Those on the call included Federal Reserve Chairman Jerome Powell, Securities and Exchange Commission Chairman Jay Clayton and Federal Housing Finance Agency Director Mark Calabria, whose agency regulates mortgage giants Fannie Mae and Freddie Mac.
Mortgage servicers face potential stress because the FHFA and lawmakers are granting forbearance – a widespread payment holiday – for property owners who can demonstrate financial hardship due to the virus. Calabria said Wednesday that a lot of mortgage servicers could find themselves at risk of collapse if the coronavirus pandemic lasts for more than two months.
https://www.bloomberg.com//news/articles/2020-03-26/mnuchin-forms-task-force-to-confront-mortgage-firms-liquidity
I'll take all of it for $1000 alex
also they can explain to everyone why they value the gold certificates at $42.22/oz and have since 1973
>Although the Federal Reserve does not own any gold, the Federal Reserve Bank of New York acts as the custodian of gold owned by account holders such as the U.S. government, foreign governments, other central banks, and official international organizations. No individuals or private sector entities are permitted to store gold in the vault of the Federal Reserve Bank of New York or at any Federal Reserve Bank.
>https://www.federalreserve.gov/faqs/does-the-federal-reserve-own-or-hold-gold.htm
>Mnuchin is one of the best guys Trump has working for him
BWAHAHAHAHAHAHAHA
being forced too. You obviously know noting of his history and his father
sure nigga. you are out of the loop