Alarm! Treasury Dealer Short Positions Another Red Flag for Liquidity As Stock Market Surges On Realization The Fed May NOT Taper (And Fausti Oversold Omicron Threat)

Confounded Interest ^ | 12/7/2021 | Anthony B. Sanders

[Browns Ultra Fan]

(Bloomberg)

[Browns Ultra Fan]

Biden, Fauci and the Fed are corrupt and should be held accountable.

[SaxxonWoods]

Biden and Fauci, bad.

The FED is like the weather, I adjust to it as needed, which has worked for 45 years.

[MeneMeneTekelUpharsin]

Can someone more clearly explain exactly what "...The recent drop in primary-dealer holdings of front-end Treasuries is another warning of potential market dislocation." means? What is a drop in primary-dealer holdings of front-end Treasuries?

[jdsteel]

IMHO the next bit of “fun” will be the impending debt ceiling battle. Hellen says we’ll be unable to “pay our bills” by December 15.

I expect wailing and gnashing of teeth soon.

[SaxxonWoods]

Front end Treasuries are short-term investments. They get unwound if traders think or see they aren’t going to be profitable.

The rest is panting to get clicks.

[SaxxonWoods]

The funny part is, people have been screaming the FED has kept rates too low since Bernanke. Too much cheap money! Now the FED is saying it may raise the short-term rate (the only rate the FED controls) for the first time in years from virtually zero to .25% and maybe even .5% by late next year and people are having a cow over that.

People have a cow no matter what the FED does or doesn’t do.