The Treasury and the Fed made their moves.

What happens next? Paid subscriber analysis

The two most anticipated events this week have passed yesterday. First at 8:30 AM we got the final confirmation on the structure of the Treasury’s Q4 and Q1 bond issuance - which I immediately analyzed - and then at 2:00 PM we got confirmation that the Fed is keeping rates at 5.5%, followed by another anticipated post-FOMC rally.

Now that we got the info from both fiscal and monetary policy, the markets will start pricing in the changes. As I’ve mentioned several times in this newsletter, after these events we get a more or less clear picture of what will go down in markets over the next few months. Our positioning for the rest of the year depended on these two events in particular.

So let’s dive into the analysis.