Daily Treasury Statement Charts Update: 28/3/11
An update of the daily treasury statement charts:
The total operating balance of the US Treasury fell by roughly $10 billion on Friday (latest) and currently stands at around $65 billion. The supplementary financing account has been unwound to $5 billion, so the operating balance will probably stay around these levels until a new program is announced.
This indicator continues to suggest that we’ll see further downward movement over the next 5-6 days before a final crack-up move. [Using 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 (40 days) total operating balance vs current risk assets are posted below.
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