Agenda
| Time | Indicator/Event | Comment |
| 07:00 | MBA mortgage prch. index | Near last week's 5-year low? |
| 07:45 | Plosser (FOMC voter) | On Fed policies |
| 09:45 | Fannie Mae bill auction | $2 billion in 3- and 6-month bills |
| 10:00 | Pending home sales | Slipping into bottom half of year-to-date range |
| 11:30 | Treasury SFP-CM bill auction | $40 billion in 63-day bills |
| 11:30 | Treasury snap re-opening 5/15 | $10 billion re-opening |
| 13:00 | 10-yr (r) TIPS auction | Unchanged at $6 billion |
| 13:00 | Treasury snap re-opening 8/15 | $10 billion re-opening |
| 15:00 | TSLF announcement | Collateral pool for tomorrow's $37.5 billion 27-day Schedule 2 auction |
| Freddie Mac note announcement | Monthly scheduled announcement | |
| Reserve maint. period ends |
Intraday Updates
We don't have much to say about this morning’s coordinated rate cuts beyond the obvious.
Not that it matters, but pending home sales jumped 7.4% in August.
The Treasury has announced a first wave of $40 billion of snap reopenings of securities that are not clearing in the secondary market. more »
Economic Indicators
The August pending home sales report is the highlight of today's light economic calendar. more »
Federal Reserve Operations & the Overnight Market
Fed Open Market Operations Despite the system's massive cumulative excess reserve position, we think the odds favor an overnight RP on today's maintenance period statement date.
Also, the market will pay close attention to the composition of the collateral pool in this afternoon’s TSLF announcement. more »
Fed Funds Monitor We have adjusted our assumption for today's effective rate higher in response to the behavior of funds yesterday. more »
Treasury Finance
The Treasury has two auctions today: a $40 billion 63-day SFP auction at 11:30 and a $6 billion TIPS sale at 1:00. more »
The Money Market Observer
Monday, Oct 6 The Fed has finally been granted the ability to pay interest on reserves. If the Fed is ready to put this long-sought authority to work quickly, we would expect it to combine the announcement of the new reserves framework this week with a half-put cut in its official funds rate target. With economic and financial conditions pointing to a rate cut by the October 29 FOMC meeting anyway, there is little point in introducing new tools to enforce the old target for the next three weeks.
This week’s newsletter takes yet another look at some of the implementation issues raised by interest payments on reserves, and ends with a reminder that remunerated reserve balances may not be the only tool the Fed brings to bear on the credit crisis as it tries to restore stability to the financial markets. more »Daily Press Summary (pdf)
ICAP's i-Recap Report for Wednesday, Oct 8 The i-Recap report provides relevant market news from Dow Jones Newswires and data from ICAP and Wrightson ICAP in a take-home, easy-to-read format highlighting key developments which could impact the capital markets the ensuing trading day. Download a PDF file of the most recent report now. go »
i-Recap Report Archive go »
