Show us the money

On the heels of Friday’s payroll data, consequent rise in interest rates and ahead of $75b of Treasury auctions this week (3, 10 and 30 yr maturities), Treasury Secretary Geithner likely spent the weekend doing his best Jerry Maquire imitation yelling ‘Show me the Money’ to the Chinese and others in order to avoid any hiccups in the sale of this week’s notes and bonds. The week will be an interesting sentiment test of the Treasury markets belief in the US economic recovery that the stock market has fervently placed its chips on. Also, the FOMC convenes and the pressure begins to grow on them as to when to reverse the flood of money they continue to rain upon us. I say to the Fed, lay the groundwork now for a future hike as zero interest rates are unbecoming for the biggest economy in the world whose recession is likely over (with pace and sustainability of rebound being main question). Don’t repeat the Greenspan error of leaving rates too low for too long. An aside, Chinese stocks fell for a 4th straight day.

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