The Chicago Board of Trade (CBOT) division of the CME Group (Chicago Mercantile Exchange), provides interest rate futures traders with a source of treasury market fundamental news events, and headlines.
This newsfeed provides information on upcoming Treasury auctions, Federal Reserve member speeches, and economic news.
New home sales measure the number of newly constructed homes with a committed sale during the month. The level of new home sales indicates housing market trends and, in turn, economic momentum and consumer purchases of furniture and appliances.
Gross domestic product (GDP) is the broadest measure of aggregate economic activity and encompasses every sector of the economy and is usually released early in the third month after the reference period. Following two provisional (flash) estimates containing only limited information, this report provides the first full look at the national accounts for the region.
The Fed's balance sheet is a weekly report presenting a consolidated balance sheet for all 12 Reserve Banks that lists factors supplying reserves into the banking system and factors absorbing reserves from the system. The report is officially named Factors Affecting Reserve Balances, otherwise known as the "H.4.1" report.
In September 2017, the Fed announced a program of quantitative tightening to reduce its balance sheet through the gradual reduction of both its Treasury and mortgage-backed security holdings. The monthly reductions, executed by reinvesting a decreasing amount of maturing securities, began in October 2017 and gradually increased in size before hitting a plateau in October 2018 at $30 billion per month for Treasuries and $20 billion per month for MBS. In January 2019, the Fed indicated that it would likely bring the program to a close by the end of the year, and in May 2019, the Fed cut the monthly reduction cap for Treasuries to $15 billion and announced it would end the program in September. In its July 31, 2019 FOMC statement, the Federal Reserve announced it is concluding the balance sheet reduction of its aggregate securities effective August 1, 2019, two months earlier than previously indicated. As of this date, all principal payments of maturing Treasuries held by the Federal Reserve will be rolled over at auctions. Principal payments from agency debt and agency mortgage-backed securities up to $20 billion per month will be reinvested in Treasury securities to match the maturity composition of Treasury securities outstanding, while principal payments in excess of $20 billion per month will continue to be reinvested in agency mortgage-backed securities.
Treasury bills are sold at public auctions every week. Competitive bids at these auctions determine the interest rate paid on each issue. A group of securities dealers, known as primary dealers, are authorized and obligated to submit competitive tenders at Treasury auctions. Dealers can hold the bills, resell the bills to their clients or trade them with other securities firms. Typically, the New York Fed approves about 20 securities firms to be primary dealers but that number dropped sharply during the 2008 financial crisis as some were merged into other firms or went bankrupt. The Fed has been rebuilding that number regularly and the latest list can be found here
. Since these are public auctions, the Treasury must announce the size, date and time of the auction every week. As of December 4, 2018, the 4-week bill will be announced on Tuesdays, auctioned on Thursdays, and settled on the Tuesday of the following week. Each 4-week bill will be a reopening of an existing 8-week bill. (Department of the Treasury)