Monday, 4 March 2013

U.S. Money, Credit & Treasuries Review (as of 20 Feb-13)

U.S. Money, Credit and Treasuries Review as of 20 February 2013
The broad measures of money supply in the U.S. continued to expand rapidly on last year for the bi-weekly period ending 20 February 2013. 

The M2 money supply was up 6.94% on the same period last year while the M2+IMF+LTD* money supply increased 5.97%. For the last five bi-weekly periods the latter has increased at the fastest pace since the middle of 2009 but is 0.23%  lower than the all-time high of USD 13.7791 trillion from 9 January 2013. 

Bank Credit contracted 0.12% on two weeks ago and expanded 4.38% on the same period last year which remains lower than the 6% increase during the summer of last year (and at the end of December). All money supply values and bank credit are close to their all-time highs.

The 1-Year and 10-Year U.S. treasury yields remain extremely low in a historical perspective. Compared to one year ago the 1-Year treasury yield is down 0.01 percentage points (from 0.17% to 0.16%) and increased 0.01 percentage point on two weeks ago. The 10-Year treasury yield increased by 0.02 percentage points compared to same period last year and increased 0.01 percentage points compared to two weeks ago. The spread between the 10-Year and the 1-Year treasury yield is currently 1.85 percentage points, which is a slight increase from one year ago and unchanged from two weeks ago. 

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