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$6.8 Billion POMO Closes: Fed Buys $4.3 Billion Of 3 Year Bond Auctioned Off In October

Tyler Durden's picture




 

Zero Hedge is delighted to have officially gotten on Brian Sack's nerves: after everyone's favorite Fed offer lifter bought another $6.81 billion in bonds due 2013-2014 (at a Submitted to Accepted ratio of 3.2x) the week's last POMO is now over. However, to our delight, after highlighting repeatedly that over the past two weeks the issue monetized most by the Fed was the most recently issued bond in any given bracket, today, for the second day in a row, CUSIP PU8, the November 3 year auction, was once again put on the exclusion list, making life for flipping Primary Dealers just that bit more difficult. But don't worry: with November excluded, the biggest issue monetized by far, with $4.3 billion in purchases was the 3 year issued in... October (PB0). The net result is that instead of pocketing a ~$100 million bonus this year, the RBS/JPM/DB/GS/Jef/etc bond monetization team leader, will instead collect just $99 million of taxpayer money. We will continue tracking the exclusion list and hope to have finally put an end to at least this small farce in the Fed's monetization arsenal. In the meantime: may the farce be with you Brian Sack: please be advised that unless you close the market green we will all lose faith in your market manipulative skills (granted, the Obama mandated UI extension pass at all costs may explain a slightly red close).

 

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Fri, 12/03/2010 - 12:17 | 775572 ghostfaceinvestah
ghostfaceinvestah's picture

October?  That is really old paper, no one can accuse them of monetizing the debt now.

Fri, 12/03/2010 - 12:29 | 775627 egdeh orez
egdeh orez's picture

Brian Sack... if you are reading this... FUCK YOU!

Fri, 12/03/2010 - 13:06 | 775745 Problem Is
Problem Is's picture

Force Sack on a regular ole commercial flight and...

Have the TSA radiate him and squeeze his puny Johnson...

Fri, 12/03/2010 - 12:18 | 775574 RobotTrader
RobotTrader's picture

Is there any question that "Da Boyz" at GS, JPM, MS, et al are looking at yet another record bonus year?

A mere 27 months after the outright collapse and near death experience for all the major banks and wire houses?

Look for sales price/square foot to reach fresh new records this summer out at The Hamptons.

Fri, 12/03/2010 - 12:45 | 775681 Internet Tough Guy
Internet Tough Guy's picture

Look for gas prices to hit 3.75 in LA. lulz.

Fri, 12/03/2010 - 12:54 | 775713 SheepDog-One
SheepDog-One's picture

Look for empty grocery stores...I went into one last nite, I thought I was in Zimbabwe! Nothing on the shelves, no selection of brands, and what was there was a buck more than I ever saw it before! 

Fri, 12/03/2010 - 12:19 | 775579 66Sexy
66Sexy's picture

Unemployment going UP not down; the cataclysm is coming, not a crack. the FED QEII is failing, sell off without a tax cut extension. its all denial from here. asia buyin gold dumpin dollar, choose your form of diversion.

Fri, 12/03/2010 - 12:56 | 775720 SheepDog-One
SheepDog-One's picture

As long as all reality can be ignored and everything goes on day after day in complete and utter denial, all should be fine! 

In other news, americas 2nd highest crime rate city Philly cuts 50% of its police force. May the body armor be with you.

Fri, 12/03/2010 - 12:20 | 775587 Traianus Augustus
Traianus Augustus's picture

POMO...it is not just for special occasions anymore.  POMO everyday...a new way of life!

Fri, 12/03/2010 - 12:19 | 775588 Revolution_star...
Revolution_starts_now's picture

$6.8 Billion POMO Closes: Fed Buys $4.3 Billion Of 3 Year Bond Auctioned Off In October.

 

Insert background music:

We gotta move those refridgerators, we gotta move those color Tv's. MOVE A MOVE A.

Hey that ain't working, that's the way you do it, those guys ain't dumb. Get a blister on your printing finger, SEC has a blisters on thier schlongs.

Fri, 12/03/2010 - 12:20 | 775589 TruthInSunshine
TruthInSunshine's picture

POMO is going to lead to fading results here as a direct corollary to boosting equity markets, as recipients of the Federal Reserve's daily love focus on using their ill-gotten gains to build their cash reserves in anticipation of deteriorating macro and micro business conditions that lay ahead.

In other words, POMO love is going to be used in a manner that won't please The Bernank, as targeting stock market reflation is The Bernank's singular mandate now.

The question that will inevitably arise is, "what can/will The Bernank do about this?"

Fri, 12/03/2010 - 12:26 | 775616 ghostfaceinvestah
ghostfaceinvestah's picture

I suspect that, as usual, much of the POMO money will go into PM's and hard commodities.  Let's see - yup, gold and oil are up today despite "official" unemployment reaching for 10% again.

Fri, 12/03/2010 - 12:45 | 775680 EscapeKey
EscapeKey's picture

Somehow I think The Bernank would take serious issue with POMO money flowing into anything but bonds and equities.

Fri, 12/03/2010 - 13:32 | 775811 TruthInSunshine
TruthInSunshine's picture

I just wanted to add that a lot of POMO largess is going to have to be used by banks and financial firms still holding on to toxic assets - especially RMBS and CMBS - is goingto be depleted as these firms and banks write off massive losses going forward, and will have to use POMO cash to restore capitalization.

In fact, I think The Bernank's worst nightmare is playing out in real time now; unable to stop the bleeding going into 2011 in the real economy, the true asset values carried by banks and such financial firms will depreciate even more, and The Bernank may just face an honest to goodness revolt and find his hands tied to anything significantly more in terms of recapitalizing these firms with taxpayer monies.

 

"We'll see," said the Zen Master.

 

p.s. - China is looking WEAK as developers are defaulting on government owned tracts of real estate there, per news out of Beijing today.

Fri, 12/03/2010 - 13:45 | 775845 SheepDog-One
SheepDog-One's picture

If anything, a lot of POMO has been going into PM SHORTS!

Fri, 12/03/2010 - 12:39 | 775661 NotApplicable
NotApplicable's picture

I doubt that they believe they can levitate the markets for too long anyways. More likely, they are trying to manage a "soft decline" to counteract all of the money flowing out, until such a time as it's only suckers funds (pensions et al.) left. By then, the writing will be on the wall, the POMO cash will go elsewhere, and the next round of disaster ensues, prompting calls for the next hit of QE.

Not to mention that we are only a few more months away from higher commodity prices showing up in grocery and other retail stores, and one can see the perfect storm brewing.

Fri, 12/03/2010 - 12:23 | 775604 Threeggg
Threeggg's picture

A must watch Max Kaiser interview

http://www.presstv.ir/detail/153719.html

I have never said I love a guy. !

But, you know what .................?

I Love this guy. !!

Classic !

Sun, 12/05/2010 - 01:44 | 779084 Hephasteus
Hephasteus's picture

Great link. There's still one thing people are not mentioning. The IMF the fed and governments can't create jobs right now. First they have to steal enough money and assets. They won't create anything but inflation until they've stolen enough.

Fri, 12/03/2010 - 12:26 | 775613 karzai_luver
karzai_luver's picture

Tyler....You looking for a rape charge punk??

Lieberman is releasing a fatwah on your ass if you don't cut it out.

Fri, 12/03/2010 - 12:32 | 775631 Kina
Kina's picture

Don't joke. Some of these would do away with anybody that annoyed them if they thought there a way to get away with it. Fortunately America wont be at that stage for another 12 months.

Fri, 12/03/2010 - 12:26 | 775614 papaswamp
papaswamp's picture

What is the total so far? ZH should have a little graph going or something for Friday entertainment. Is it time for a drink yet?...wait it isn't noon...damn it.

 

Fri, 12/03/2010 - 12:29 | 775624 karzai_luver
karzai_luver's picture

NOT A FREAKIN GRAPH!!!!

Now you are getting close to disappearing time....

DON'T GO THERE.

Fri, 12/03/2010 - 12:40 | 775664 papaswamp
papaswamp's picture

I couldn't resist....it's Friday and I have a bottle of Buffalo Trace Whiskey staring at me and a redhead coming over to drink it with me. We are going to roll in some silver.

Fri, 12/03/2010 - 12:36 | 775649 Tyler Durden
Tyler Durden's picture

Fri, 12/03/2010 - 12:38 | 775658 papaswamp
papaswamp's picture

There it is!!!

Fri, 12/03/2010 - 13:30 | 775804 sbenard
sbenard's picture

Wow! That graphic blows my mind. The correletion is irrefutable! Thanks! I'm going to send that to all my friends!

Fri, 12/03/2010 - 13:32 | 775813 trav7777
trav7777's picture

PUT HIM IN THE IRON MAIDEN

Fri, 12/03/2010 - 12:28 | 775622 Cognitive Dissonance
Cognitive Dissonance's picture

In the meantime: may the farce be with you Brian Sack:

Even Tyler can't resist a small popular culture reference. May I amend?

In the meantime: may the farcical Fed force be with you Brian Sack:

Fri, 12/03/2010 - 12:34 | 775643 Revolution_star...
Revolution_starts_now's picture

In the meantime: may the farcical Fed force be with you Brian Sack:

 

Yes his NSA code name is Nut Sack......

Fri, 12/03/2010 - 14:30 | 775983 I Am The Unknow...
I Am The Unknown Comic's picture

Hey now!  I resemble that remark!

Fri, 12/03/2010 - 12:29 | 775626 TWORIVER
TWORIVER's picture

US$ Index comes back to up trend and support. Good entry point here at 79.5

Fri, 12/03/2010 - 12:35 | 775645 Hansel
Hansel's picture

Sold to you.

Fri, 12/03/2010 - 12:38 | 775656 TWORIVER
TWORIVER's picture

DONE. See you at 83.5.

Fri, 12/03/2010 - 13:11 | 775759 tmosley
tmosley's picture

Great, so what will you do with your equally worthless currencies when you cash out of your dollar position?

Or did you forget that the USDX is an index of dollar strength versus other currencies ONLY, where all those other currencies are rapidly losing value as well?  The USDX might be 83500, but what is the point if a loaf of bread costs $500,000?

Fri, 12/03/2010 - 12:35 | 775647 redpill
redpill's picture

Market down still? WTF, UP THE DOSAGE BENNY!

Fri, 12/03/2010 - 12:47 | 775687 SheepDog-One
SheepDog-One's picture

Dollar harshin Benny and Sacks POMO market pump buzz today.

Fri, 12/03/2010 - 12:36 | 775650 sawyer
sawyer's picture

Funny how there is no more mention of the ECRI on this site while it was presented every Friday while the WLI was declining...Now at -2.4% for those who still believe it is a leading indicator. Seems more like a coincident indicator of the S&P.

Fri, 12/03/2010 - 12:51 | 775702 papaswamp
papaswamp's picture

I'm not sure it is very reliable with Fed $$ injections going on. 

Fri, 12/03/2010 - 13:54 | 775869 erik
erik's picture

it is a coincident indicator in most cases and leading in some other cases.

do you know where the ECRI was in Oct 2007 when the stock market topped?  -0.6%

did you know that the ECRI was at -9.9% in Apr 2001 (S&P bottom) then improved over 3 months to -2.4% in June 2001 (S&P top)? 

do you know where ECRI bottomed this cycle?  on Aug 27th, the day Bernanke dropped QE2 rumor.

so claiming that a move back to -2.4% is the sign that things are all good going forward is not good detective work.

 

Fri, 12/03/2010 - 12:58 | 775728 SheepDog-One
SheepDog-One's picture

SP 1220 looks like the steamroller lift in the Worlds Strongest Man competition...impossible for any of em to lift.

Fri, 12/03/2010 - 12:54 | 775715 Internet Tough Guy
Internet Tough Guy's picture

Dropping like a rock. We're going to need a bigger boat!

Fri, 12/03/2010 - 13:08 | 775754 Fortunes Favor
Fortunes Favor's picture

Anyone know when the next POMO schedule for December and Jan. will come out? Will the POMO on Dec. 8th be the last of the year?

Fri, 12/03/2010 - 15:11 | 775994 I Am The Unknow...
I Am The Unknown Comic's picture

The Bear-shankie sycophants at the NY Fed will are due to release the next schedule on 10-Dec.  You can keep track at the NY Fed POMO webpage:  http://www.newyorkfed.org/markets/pomo_landing.html

Cheers

Fri, 12/03/2010 - 13:20 | 775780 sbenard
sbenard's picture

Anyone -- what's the total POMO tab for this week? Isn't it somewhere in the neighborhood of $35 billion? Thanks in advance!

Fri, 12/03/2010 - 14:44 | 776031 I Am The Unknow...
I Am The Unknown Comic's picture

Sum biatch!  I just added it up and got 39.499 Billion mofo POMO momo!  Dat be dang near 40 B bitchez!  Mange! 

You can check my math, as well as do your own future checks on this NY Fed webpage:

http://www.newyorkfed.org/markets/pomo/display/index.cfm?showmore=1&opertype=orig

Freaking eh, can't they just toss me a fucking $100K of that?  I mean come on....that's not even a penny on the dollar...it's but a penny on $40,000 of this trainwreck for this week alone.  Fuck me, can't a guy get a penny out of these fuckers?

Fri, 12/03/2010 - 13:33 | 775815 trav7777
trav7777's picture

B. Sachs throwin a little curve to the PD piggies?

Do NOT follow this link or you will be banned from the site!