Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article

Skip to comments.

Something Happening? Fed Repos Soar To $2.55 Trillion As US Treasury Yields Tank -14.5 Basis Points (Mortgage Rates To Decline)
Confounded Interest ^ | 01/03/2023 | Anthony B. Sanders

Posted on 01/03/2023 7:36:46 AM PST by Kaiser8408a

There is something happening in markets this morning.

First, banks are stashing cash with the New York Fed on an “overnight basis” although it is looking pretty permanent to me. Repos (or repuchase agreements) soared to $2.55 TRILLION as of 12/30/22.

But this morning we see the US Treasury 10-year plummeting -15 basis points. As I used to tell my University of Chicago, Ohio State and George Mason finance students, any 10 basis point shift (plus or minus) is a big deal. Something is happening.

The 10-year Treasury yield plunging -15 bps is a “good thing” for the mortgage market in that US mortgage rates will likely follow suit and fall.

(Excerpt) Read more at confoundedinterest.net ...


TOPICS: Business/Economy; Food; Government
KEYWORDS: banking; blogpimp; brownsultrafan; fed; inflation; mortgage
Navigation: use the links below to view more comments.
first 1-2021-34 next last
Something is happening and its BAD.
1 posted on 01/03/2023 7:36:46 AM PST by Kaiser8408a
[ Post Reply | Private Reply | View Replies]

To: Kaiser8408a

US Treasury and ESG , LOL


2 posted on 01/03/2023 7:39:08 AM PST by butlerweave
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kaiser8408a

We have been expecting a horrible downturn, but could you explain what is happening? I understand markets to a degree, but I’m horrible at projections. Thanks in advance...


3 posted on 01/03/2023 7:40:26 AM PST by mikelets456
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kaiser8408a

Looking at cd rates, the high rate currently is about 4% for 12-18 months and then drop.

Just an observation.


4 posted on 01/03/2023 7:41:54 AM PST by PeterPrinciple (Thinking Caps are no longer being issued but there must be a warehouse full of them somewhere.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kaiser8408a

DOW JONES 30 INDUSTRIALIndex , DJIA
33,115.97 -31.28


5 posted on 01/03/2023 7:42:26 AM PST by central_va (I won't be reconstructed and I do not give a damn...)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kaiser8408a

But something is happening and you don’t know what it is
Do you, Mr. Jones?
— Dylan


6 posted on 01/03/2023 7:44:48 AM PST by ClearCase_guy (No one is as asleep as the "woke". They define the term "useful idiot".)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kaiser8408a

“Buckle your seatbelt Dorothy, ‘cause Kansas is going bye bye...”


7 posted on 01/03/2023 7:45:17 AM PST by EEGator
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kaiser8408a

“..Something is happening and its BAD. ..”

IF it’s coming out of the current woke regime, you can take ^THAT^ to the bank (no pun intended).


8 posted on 01/03/2023 7:46:41 AM PST by lgjhn23 ("On the 8th day, Satan created the progressive liberal to destroy all the good that God created...")
[ Post Reply | Private Reply | To 1 | View Replies]

To: Kaiser8408a

Trying to prop up the housing market


9 posted on 01/03/2023 7:52:41 AM PST by Josa
[ Post Reply | Private Reply | To 1 | View Replies]

To: Josa

https://www.zerohedge.com/markets/blackstones-breit-gets-4-billion-buffett-style-bailout-university-california


10 posted on 01/03/2023 7:55:07 AM PST by kaintucky
[ Post Reply | Private Reply | To 9 | View Replies]

To: lgjhn23

Holding cash is a sign of uncertainty, which indicates that even sophisticated financial players like banks are unable to forecast the direction of the economy and financial markets.


11 posted on 01/03/2023 7:56:54 AM PST by Rockingham
[ Post Reply | Private Reply | To 8 | View Replies]

To: Kaiser8408a

Probably concern over the organization of Congress, whether the debt ceiling will be raised, or whether the US will default on Treasuries.


12 posted on 01/03/2023 8:02:46 AM PST by FarCenter
[ Post Reply | Private Reply | To 1 | View Replies]

To: ClearCase_guy

“But something is happening and you don’t know what it is
Do you, Mr. Jones? — Dylan”

I’m like Mr. Jones. A repurchase agreement is where a loan is made and usually returned the next day. What does this accomplish?


13 posted on 01/03/2023 8:06:55 AM PST by cymbeline
[ Post Reply | Private Reply | To 6 | View Replies]

To: butlerweave

ESG is largely hidden from the public. Most would not understand the connection of that to the ChiCom’s Social Credit Scoring System and the 24/7 monitoring and the enslavement of the world that is their goal.

This has been coming for quite a while. Clues can be found from these 2 video’s (supported by many other observers.)


Catherine Austin Fitts | Full Interview | Planet Lockdown (2 years ago)
Dailymotion

https://www.dailymotion.com/video/x7zt7e8


IF Special: Catherine Austin Fitts on “Dollar System & the coming changes in Global Currency Regime” (Sep 2022)

https://www.youtube.com/watch?v=wYaH63evjMg


Not in the first video, her mention of slavery? At the time I first saw it, it was unclear exactly why she mentioned that. Now, if you look at the 2nd video from a few months ago, I is clear why she did.


14 posted on 01/03/2023 8:17:20 AM PST by Texas Fossil ((Texas is not where you were born, but a Free State of Heart, Mind & Attitude!))
[ Post Reply | Private Reply | To 2 | View Replies]

To: cymbeline

“What does this accomplish?”

It makes sure that some portion of the bank’s funds are not tied up more than 24 hours. Perhaps they think they will need liquidity.


15 posted on 01/03/2023 8:18:37 AM PST by Boogieman
[ Post Reply | Private Reply | To 13 | View Replies]

To: Kaiser8408a
The 10-year Treasury yield plunging -15 bps is a “good thing” for the mortgage market in that US mortgage rates will likely follow suit and fall.

The bad thing that's happening is that moves like this artificially prop up out-of-control, artificially inflated home prices.

For those looking for affordable home prices, look again: not happening.

16 posted on 01/03/2023 8:20:34 AM PST by usconservative (When The Ballot Box No Longer Counts, The Ammunition Box Does. (What's In Your Ammo Box?))
[ Post Reply | Private Reply | To 1 | View Replies]

To: mikelets456
but could you explain what is happening?

Yes, debt is not money. Never has been, never will be.

Right now public and private debt is in the $60-$70 trillion range. It will never be repaid, therefore, it will be liquidated in the biggest Jubilee the world has ever seen.

It's musical chairs, with a lot more bankers than chairs, and the music is about to stop.

17 posted on 01/03/2023 8:24:30 AM PST by Jim Noble (You have sat too long for any good you have been doing)
[ Post Reply | Private Reply | To 3 | View Replies]

To: Kaiser8408a

Yup


18 posted on 01/03/2023 8:29:21 AM PST by Nifster (OI see puppy dogs in the clouds )
[ Post Reply | Private Reply | To 1 | View Replies]

To: Jim Noble

Thank you-—Could be bad by the end of the 3rd quarter? Sadly, the only possible way to save this country is have it crash and burn.


19 posted on 01/03/2023 8:31:26 AM PST by mikelets456
[ Post Reply | Private Reply | To 17 | View Replies]

To: Rockingham

They think it’s going to go bad all over and liquidity is everything


20 posted on 01/03/2023 8:31:26 AM PST by Nifster (OI see puppy dogs in the clouds )
[ Post Reply | Private Reply | To 11 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-34 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
Bloggers & Personal
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson