Visible Supply
Candlefocus EditorIn the municipal bond market, the visible supply is calculated by taking the total amount, in dollars, of municipal bonds with maturities of 13 months or more that are expected to reach the market during a 30 day period. The visible supply gives a hint as to the market’s supply side, and outlines the amount of bonds that can be acquired during the 30 day period.
Visible supply is a key metric for bond traders, since it helps them to better assess supply-side trends in the municipal bond market. If the visible supply is large and growing, it indicates that there is adequate availability of bonds, allowing buyers to acquire the bonds they need. Conversely, if the visible supply is shrinking, it indicates that there is tightness in the market and scarcity of bonds.
In addition to the bond market, visible supply is also important in the agricultural commodities markets. In this case, the visible supply is calculated by taking the amount, in tons, of agricultural commodities that are expected to reach the market during the next 30 days. Knowing the supply of commodities available in the market gives traders an advantage in making their trading decisions.
In conclusion, the visible supply is an important calculation for a variety of marketplaces, providing a snapshot of the supply of assets or goods at a given time. It’s an essential metric for both bond and commodities traders, helping them to assess market trends and make informed trading decisions.