Agenda
| Time | Indicator/Event | Comment |
| 09:45 | Freddie Mac bill auction | $2 billion 2-part auction |
| 10:00 | Bernanke | Testify at the House Budget Committee on the economic outlook |
| 10:00 | TAF auction | $150 billion 28-day operation expected |
| 10:00 | Leading indicators | Small, temporary increase possible for September |
| 11:00 | 4-week bill announcement | Steady at $27 billion? |
| 11:30 | Treasury cash management bill auction | $35 billion in 225-day bills |
| 12:45 | Kroszner (FOMC voter) | On risk management |
| 12:45 | Lockhart (FOMC non-voter) | On the economic outlook |
| 13:00 | 3- and 6-month bill auction | $1 billion reduction in 6-month offering; $52 billion total |
| Fannie Mae note announcement | Monthly scheduled announcement |
The Money Market Observer
Monday, Oct 20 Life isn’t getting any easier for the Treasury. After a round-the-clock effort to persuade Congress to approve the TARP in the first, the Treasury now finds it needs to persuade banks to take advantage of the capital injection option. The terms still seem attractive to us; there is just that little matter of convincing healthy banks to sign up to participate in a “bailout” program.
This week’s newsletter also looks at the convergence of the NYFR and LIBOR fixings last week, and the prospects for further narrowing in interbank spreads in light of the growing network of official backstops. The FDIC is still trying to figure out what the U.S. guarantee program should look like. It is a delicate task. Poorly-designed, patchwork guarantee programs can do more harm than good. more »
Economic Indicators
The economic calendar in the U.S. is exceptionally light this week. The Conference Board’s index of leading indicators is the only item on today’s schedule, and the September existing home sales report on Friday is the only major monthly report due out later in the week. more »
Federal Reserve Operations & the Overnight Market
Fed Open Market Operations We see no reason for the Fed to depart from its recent pattern of arranging reverse RPs of around $25 billion this morning. Also, comments on the outlook for this week's TAF and Euro-TAF operations. more »
Fed Funds Monitor A decrease in the reserve surplus should help to temper late-day softness, but we suspect that funds will trade below 1% for much of the session again today. more »
Treasury Finance
The Treasury will sell $35 billion of CM bills and $51 billion of regular 3- and 6-month bills today, and -- at a minimum -- will announce the terms of tomorrow's 4-week bill sale this morning. Additional SFP bills and/or snap note reopenings to break up the delivery logjam are possible at any time. more »
Daily Press Summary (pdf)
ICAP's i-Recap Report for Monday, Oct 20 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 »
