Trillion-Dollar Treasury Vacuum Coming for Wall Street Rally

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by scott_jr

  • Treasury will kick off a borrowing spree that by some Wall Street estimates could top $1 trillion by the end of the third quarter, starting with several Treasury-bill auctions on Monday that total over $170 billion.
  • This will be yet another drain on dwindling liquidity as bank deposits are raided to pay for it — and Wall Street is warning that markets aren’t ready.
  • “This is a very big liquidity drain,” says Panigirtzoglou. “We have rarely seen something like that. It’s only in severe crashes like the Lehman crisis where you see something like that contraction.”
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finance.yahoo.com/news/trillion-dollar-treasury-vacuum-coming-135944792.html


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