Good Tuesday AM from your Hometown Lender,
Not much going on today.
Markets seem to be in a patient pause. There was some data released, mostly second tier metrics, nothing substantial for the markets.
- Consumer Confidence 104.7 vs 106.7
- Rich Fed Mfg -11 vs -5
Some good insight from the WSJ on a topic I’ve mentioned. Too much Treasury supply pushes (and keeps) rates elevated.
$27 Trillion and Growing… I cannot fathom this number…. Take a look at the trajectory over the years.
The world’s largest, most-important financial market is growing by leaps and bounds.
On Wall Street, that is making people nervous. Annual issuance of U.S. Treasurys has exploded, nearly doubling since the pandemic began. The government sold a record $23 trillion worth in 2023. And few think the spree is going to slow soon, given the widespread expectation that government spending will continue to rise regardless of who wins November’s elections. The agency raised a net $2.4 trillion last year to finance the federal budget deficit, including what it had to sell to repay holders of maturing debt.
Last, homeowners with mortgages saw a collective annual equity increase of $1.3 trillion in 2023’s fourth quarter, according to CoreLogic.
Please remain safe and healthy, make today great!!!
