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Market Brief – Wednesday 7/14/21

Stocks rose in overnight trading as investors continue to bet on the Fed continuing to keep monetary policy loose. Treasury yields fell in overnight trading and extended their decline in early trading as 30-year Treasury yields dipped below 2.0%. Mortgage applications surged +16.0% last week as purchase applications rose +8.3% and refinance applications rose +20.4%. … Read more

Market Brief – Tuesday 7/13/21

Stocks dipped in overnight trading but traders were not deterred as they hit the bid at the opening bell to take stock prices higher. Treasury yields fell in overnight trading ahead of the June CPI print and remained lower in early trading much to the surprise of many investors. The National Federation of Independent Business … Read more

Market Brief – Monday 7/12/21

Stocks were flat in overnight trading, but buyers were eager as they bid stocks higher after the opening bell rang. Treasury yields fell in overnight trading, but sellers were eager to send yields higher ahead of today’s Treasury auctions. Today’s $58 billion 3-year Treasury Note auction was met with decent demand as foreign bidders took … Read more

The Collateral Shortage Will Get Worse

Recently, Credit Suisse’s banking expert Zoltan Pozsar suggested the Federal Reserve’s Overnight Reverse Repurchase Program (RRP) will see over a trillion dollars flooding in over the next couple of months as the collateral shortage worsens. In what appears to be a collateral game of “hot potato, the Fed is trying to encourage those with pristine … Read more

Market Brief – Friday 7/9/21

Stocks and Treasury yields shot higher in overnight trading after China eased lending standards. Stocks continued their overnight move higher in early trading while Treasury yields were holding their overnight move. Stocks closed out the day and week higher as investors hope the Chinese liquidity injection will find its way into the equity markets. Treasury … Read more

Market Brief – Thursday 7/8/21

Stocks fell sharply in overnight trading as fears of a global economic slowdown put a damper on the recent equity rally. Treasury yields also fell sharply in overnight trading with 30-year Treasury yields breaking below 2.0% before sellers aggressively sold bonds to bring yields back up from their overnight lows. Unemployment claims rose slightly to … Read more

Market Brief – Wednesday 7/7/21

Stocks rose in overnight trading, then hit a wave of selling before buyers stepped came back in early trading. Treasury yields fell in overnight trading and were down further in early trading. Mortgage applications fell -1.8% as purchase applications fell -1.1% and refinance applications fell -2.3%. The Job Openings and Labor Turnover Survey (JOLTS) showed … Read more

Market Brief – Tuesday 7/6/2021

Stocks were flat in overnight trading and lower in early trading as a wave of selling followed the opening bell. Treasury yields fell in overnight trading and extended their decline in early trading. The Markit Services PMI showed the services sector expanded at the same rate in June, with a 64.6 print, as it did … Read more

The Fed is to Blame

There is a huge collateral shortage in the banking system, which has many worried it is a leading indicator of a potential banking crisis. Yet, of all the problems the Fed is faced with, this is one problem the Fed is extremely well equipped to handle. Oddly, the Fed may be largely responsible for the … Read more

Market Brief – Friday 7/2/21

Unsurprisingly, rose in overnight trading and were slightly higher in early trading. Treasury yields fell in overnight trading until the Nonfarm payroll report was released when they gave back all of their overnight gains falling in early trading. Nonfarm payrolls beat expectations in June with +800k jobs created, with most of them in the services … Read more