Daily Treasury Statement Charts Update: 22/3/11
An update of the daily treasury statement charts:
The total operating balance of the US Treasury was flat yesterday (latest). The overall trend of the total operating balance remains downwards (at least for another week or two) due to the unwinding of the supplementary financing account.
In a peculiar and alchemistic fashion, the markets have corroborated the thesis that net US Treasury withdrawals are bullish for risk assets and net accumulations are bearish for risk assets (on a lagged basis). The charts of the lagged total operating balance vs current risk assets are posted below. They continue to suggest that – in spite of the recent rally – market stress will be prevalent for the next 9-10 trading days. After that, there may be some upward movement.
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