Bankster Crime

Exposing Fraud in the Banking System

Featured Story

$244 Billion of Treasury Debt to Hit the Market Today and Tomorrow as Interest Rates Spike on Ballooning Supply

BanksterCrime:

Upcoming Treasury Auctions

By Pam Martens and Russ Martens,

When Federal Reserve Chairman Jerome Powell held his press conference on May 1 to explain the Fed’s latest policy actions, more than a dozen reporters showed up to ask questions. Those reporters came from every major business news outlet. (See transcript here.)

But on the same date, when the U.S. Treasury’s Assistant Secretary for Financial Markets, Josh Frost, conducted a press conference to announce the details of the Treasury’s plans to issue $125 billion in Treasury debt securities (quarterly refunding), only one reporter from Bloomberg News showed up to ask questions. (See the awkward video at this link.)

Perhaps the U.S. Treasury needs to hire a strong arm like Michelle Smith, Director of Communications at the Fed for the past 23 years, to oversee its press conferences. Or, perhaps a lighter touch would be more welcome. Then again, maybe the U.S. Treasury would rather not call attention to its ballooning issuance of debt.

In addition to the giant pile of debt securities that the U.S. Treasury issues in its quarterly refunding operations, the Treasury also holds ongoing auctions of debt. (See what is being auctioned by the Treasury today and tomorrow on the above chart.)

These auctions will come directly on the heels of the debt markets gagging on $70 billion of a 5-Year U.S. Treasury Note auction and $69 billion in a 2-Year Treasury Note auction – both held yesterday. Treasury yields spiked across the board yesterday, including on the benchmark 10-year Treasury, on the increased supply and in anticipation of more supply about to hit the market.

The additional $244 billion in Treasury debt set to be auctioned today and tomorrow is likely to send more shivers through debt markets as well as in the corner offices of the megabanks on Wall Street. As the chart below shows, the publicly-traded shares of all five megabanks that hold trillions of dollars in interest rate and credit derivatives closed in the red yesterday. Those megabanks are JPMorgan Chase (JPM); Citigroup (C); Bank of America (BAC); Goldman Sachs (GS); and Morgan Stanley (MS).

Not only do these megabanks hold massive bets on the direction of interest rates via their derivative holdings but their securities divisions are also contractually obligated to buy Treasuries at each auction as part of being a “Primary Dealer” to the Fed.

JPMorgan Chase and Goldman Sachs are two of the 30 stock components of the Dow Jones Industrial Average (DJIA), lending a disturbing twist to the definition of “industrial.” The Dow closed in the red to the tune of 216.7 points yesterday while the NASDAQ (COMP), stuffed with tech highfliers reminiscent of the dot.com bubble of the late 90s, closed above 17,000 for the first time.

Throwing gasoline on the interest rate spike were comments made by Minneapolis Fed President Neel Kashkari in a CNBC interview yesterday. Those comments were released in the wee hours of Tuesday morning – well in advance of the Treasury Note auctions. Kashkari said Fed interest rate hikes should not be ruled out. The megabanks and the debt markets have been eagerly anticipating interest rate cuts by the Fed.

At 9:24 a.m. this morning, six minutes before the stock market is set to open, Dow futures were down 252 points, suggesting more spill out ahead from the Treasury debt supply overhang.

Closing Prices, May 29, 2024

Beef in Bulk: Half, Quarter, or Eighth Cow Shipped to Your Door Anywhere within Texas Only

We do not mRNA vaccinate our cattle, nor will we ever!

Grass Fed, Grass Finished Beef!

From Our Ranch to Your Table

Order Today

Don't Miss

US Banks Suffer Trillion-Dollar Deposit Loss In 2023, Small Bank Capitalization Remains Problematic

By StevieRay Hansen

by Tyler Durden On a non-seasonally-adjusted basis (why adjust when we are looking at annual changes), US domestic banks saw a stunning $1.17TN in deposit…

Read More

Warning The Banks Are Not OK

By StevieRay Hansen

Michael Wilkerson Author It has been nine months since the spectacular and sudden collapse of Silicon Valley Bank. After witnessing three of the four largest…

Read More

This Is Merely the Very Beginning. This Year, at Least 21 Spac-Listed Companies Declared Bankruptcy, Wiping Out a Total of $46 Billion in Equity. Coming: The Mother of All Crashes Coming

By StevieRay Hansen

0 HNewsWire: A wave of bankruptcies and corporate defaults can be imminent as US corporations are being battered by rising loan rates. Experts caution that…

Read More

The DOJ Took More than Two Years to Answer a FOIA on Its Criminal Division Head; Three Days Before Christmas 2023 We Got a Troubling Disclosure

By StevieRay Hansen

By Pam Martens and Russ Martens: Kenneth Polite On July 20, 2021 the U.S. Senate voted 56-44 to confirm Kenneth Polite (pronounced Po-leet) to head the most…

Read More

Financial Chaos,Civil War–Joe Biden’s Economy Is Driving the United States Toward Collapse

By StevieRay Hansen

The right knows that the system is breaking down, and it has a plan: violence and unity with Satan Solder elements that are traitorous. Nobody…

Read More
Posted in

BanksterCrime

LEAVE A RESPONSE

Your email address will not be published. Required fields are marked *