WEEKLY FED BALANCE SHEET REVIEW. A NEW RECORD IN MAY
. Federal Reserve: "Factors Affecting Reserve Balances", May 31

- Fed's Treasuries holdings: $783.3bn (+3.3bn)
- Other central banks' Treasuries holdings: $1,231.4bn (+$9.8bn) (*)
- Other central banks' agency securities: $727.9bn (+$4.9bn) (*)
- Mackinlay's Global Dollar Liquidity Measure: $2,742.6bn (+$17.9bn)

(*) Off-balance-sheet items.
agustin_mackinlay@yahoo.com
__________________

It's official: liquiditywise, May was the strongest month of the year. Our Global Dollar Liquidity Measure now tops $2,742 billion, a monthly increase of $48.9bn. The annual rate of growth (14.4%) is the highest since February 2005. Our Endogenous Liquidity Index, which combines measures of CDS spreads, volatility and the carry trade, continues to surge forward. Meanwhile, the "Goldilocks/Stagflation" indicator appears to stagnate somewhat, a slightly less bullish development.