Posted on 06/06/2023 8:10:12 AM PDT by C210N
NEW YORK, June 5 (Reuters) - Investors are bracing for a wave of U.S. government bond issuance as the Treasury plans to refill its depleted coffers quickly after the recent suspension of the debt limit.
The Treasury General Account has fallen sharply since January when Treasury hit its limit on borrowing. Cash balance targets indicate it will need to rebuild its account quickly now that the borrowing cap has been lifted.
(Excerpt) Read more at reuters.com ...
The US Treasury web site has a page for Cash and Debt forecasting:
The main data page, first possible selection, is the 'Daily Treasury Statement'. This link has been broken since early Monday - the day that Janet YELLING! kept telling us was the drop dead date. I don't believe in coincidences with this gang, this page is "broken" for a reason - I just can't quite figure out why exactly...
15% inflation?
I don’t believe in coincidences with this gang
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One thing for sure...they only tell us what they want us to know. Nothing more.
Basically treasury prices tend to go up in bear markets (such as the brief one in year 2020). I'm anticipating more bear this year (the S&P 500 is currently down 10% from its ATH on Jan 3, 2022) which is why I'm out of equity funds and somewhat in LT treasury funds (hoping to make some cash on the market downturn). We'll see if it was a wise choice.
I can’t figure out why anyone would still loan money to the US.
15% inflation?
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TPTB massage and torture the data so much who knows what the real rate of inflation really is? All I know is that every time we go to the store prices on almost everything are up.
But inflation is not a problem for the elites. They have financial assets, money advisors, and comfortable jobs with great compensation packages. Maybe the cost of dining out in fine restaurants is up a little but by and large they are immune from the effects of inflation.
Who can predict what our final and ultimate economic collapse will look like?
Who’s gonna buy em?
Printing US dollar and spreading it over the world to pump the value of the dollar, just where do you think the US dollar will flow back to?
The US.....and here comes hyper-inflation.
We spread inflation to the rest of the world as well.
The US has become “The Great Satan”—everyone laughed when the Iranians called us that—nobody is laughing any more.
While I agree with the premise - last year was not a typical year as TLT was down nearly as hard as the overall market - I shifted to it in Feb/Mar time frame thinking it would be protective vs the stock market - and I’m still down 20% as of today. Everything took a bath last year.
In addition, the last time this (big issuance following debt ceiling battle) happened in 2012 (?) the stock market dropped due to the liquidity drain. People will fly to safety with the type of yields we are looking at on short term bonds (over 5% currently).
The question is will they issue longer term or shorter term debt. Given what Yellen has said about issuing now and paying down bonds in 2024 I’m assuming short term issuance...which means longer term demand (TLT and the like) will continue to lag as the shorter term rate is just better.
The diabolical FED doesn't just create money (with the mint), they *loan* it to the US government with interest, from the gitgo. So, anyone in their right mind would not loan money to the US, while the FED is happy to. It pays well!
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