The liquidity tsunami is over, and the Treasury now expects to release just $100BN in cash for the next two months, from the $903BN currently to $800BN at the end of June, and then just another $50BN lower three months later, or $750BN at the end of Sept. This slowdown in the Treasury's cash injection, together with the possible announcement of a QE taper some time around the June FOMC meeting, means that the market melt up is about to end with a bang as investors start freaking out about the risk of a hard liquidity stop - one without the liquidity buffer of Treasury cash injections - some time in mid/late-summer and start frontrunning said event.
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