Slightly more coupon issuance than projected so bit bearish.
Less bills means RRP not coming down, hence no tapering. All in
all, I read it as slightly bearish for equities.
Posted by DigiNomad on 31st of Jan 2024 at 10:22 am
More debt bad for America, especially middle class and below,
but it's great for inflating asset prices (stocks, bonds,
real estate) as the currency is diluted....no?
*I just read the explanation on duration....makes sense, but
I think it's hard to be bearish on asset prices in medium term when
the debt issuance is pacing nearly 4 trillion per year.
QRA
Posted by steve on 31st of Jan 2024 at 10:17 am
Gross Issuance 1.1TN on the nose Net Issuance 447BN Net bills -245BN. RRP is not falling anymore QT Taper delayed.
RRP drain stopping would be bearish for equities.
And yea, that’s a key component of any liquidity model. Bearish as well if QT is not tapered
My Thoughts on QRA
Posted by steve on 31st of Jan 2024 at 10:19 am
Slightly more coupon issuance than projected so bit bearish. Less bills means RRP not coming down, hence no tapering. All in all, I read it as slightly bearish for equities.
More debt bad for America,
Posted by DigiNomad on 31st of Jan 2024 at 10:22 am
More debt bad for America, especially middle class and below, but it's great for inflating asset prices (stocks, bonds, real estate) as the currency is diluted....no?
*I just read the explanation on duration....makes sense, but I think it's hard to be bearish on asset prices in medium term when the debt issuance is pacing nearly 4 trillion per year.
Great see hear insights from
Posted by arun on 31st of Jan 2024 at 11:05 am
Great see hear insights from you guys. This is all Greek and Latin to me. But at least you are dumbing it down a bit. Ty
Bob Elliot
Posted by steve on 31st of Jan 2024 at 10:17 am
Higher amount of coupons issued. QT slowing likely delayed. Too much duration. Bad for asset prices.