Hi YXI friends,

In this article, we review the relationships between the Fed Liquidity, US Equities, US Treasury yields, Global M2 Money Supply, and the US-Japan Yield Spread.

Table of Contents

• 1. Fed Liquidity

• 2. 10Y Yield vs. Equity Correlation

• 3. Global Liquidity vs US Equities

DISCLAIMER: This newsletter is strictly educational. Any information or analysis in this note is not an offer to sell or the solicitation of an offer to buy any securities. Nothing in this note is intended to be investment advice and nor should it be relied upon to make investment decisions. Any opinions, analyses, or probabilities expressed in this note are those of the author as of the note's date of publication and are subject to change without notice.

1. Fed Liquidity

Fed Liquidity consists of the Fed Balance Sheet (Fed BS), the Treasury General Account (TGA), the Reverse Repo Program (RRP), and the Bank Term Funding Program (BTFP).

We use a rolling 5-day average to smooth out big jumps in the data as some are released only weekly.

Fed Liquidity (Red) vs SPY (Green)

Fed Liquidity (Red) vs US 10Y Treasury Yield (Green)

2. 10Y Yield vs. Equity Correlation

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