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$8.3 Billion POMO Closes: Brian Sack Forbids Instantaneous Monetization Of Just Auctioned Off 10 Year
Today's $8.3 billion QE has closed and the Fed has monetized 13 bonds of various CUSIPs between 2/15/2018 and 8/15/2020. The Submitted to Accepted ratio was a very low 3.3x, once again confirming that PDs had excess cash, did not need to rely on the Fed's generosity and as a result are now ramping stocks with aplomb. What is most curious is that after we have disclosed that in the last 2 POMOs the most monetized bond was the just auctioned off issue, today Brian Sack put CUSIP PC8, the 10 Year auctioned off on November 9 on the exclusion list (see bolded below), meaning PD were forbidden from flipping the most recent issue. We wonder if the New York Fed no longer enjoys being under the microscope in that it openly and flagrantly allows almost instantaneous monetization of "just issued" cusips? Of course, that QE2 continues to funnel billions of taxpayer money to Primary Dealers is not threatened one bit. After all millionaire bankers have to become billionaires through ongoing perfectly legal theft from the middle class in some way or another.

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It's all noise, we know the end game. Keep your PMs close.
Tyler
Any chance you can keep doing the front-run column?
While I am a lowly working class guy with no access to flipping these things, I find it fascinating to see your success rate due to the transparency of what's going on.
Over 2 billion on NYSE so far with the A/D over 7 to 3.
Powerful day.
Even the crappiest sectors are exploding higher today:
- Banks
- Homebuilders
- Solars
If this keeps up, the NYSE Summation will turn back up.
The only lagging group now is the shipping sector, which is tied to the BDI.
Yup, another brutal day for bears, who refuse to accept that the economy is slowly recovering. Once SPX gets above 123 its lights out for bears and a huge short covering begins
"...the economy is slowly recovering..."
And by that you mean that unemployment is increasing, home values continue to fall, real wages are either stagnant or falling, more Americans as a % of the population are on government assistance than at any time, and the true value of assets held by banks, financial institutions, pension funds and the like are declining, right?
If market truth is allowed to rear its ugly head again and the Government no longer supports stock prices through the PPT and POMO's.......I would love to see the faces of the longs as the market drops 20% in one fucking day!
THE MARKET CAN'T HANDLE THE TRUTH.....
Did you happen to notice that
the squid's upward revision to a 2011
2.7% GDP still makes it worse than this
year's GDP? Whoopeee...let's roll!!!!
JinkoSolar Holding Co., Ltd. ( 2 Billion Market Cap)Is a good buy at this level. I think I will ....
Nov. 3rd (38.92)
Today (23.28)
Leo.....is that you?
Did you change your handle???
Buy low. Blood in the water ... Rig,Rimm,X .... The beat goes on.
Thanks. I'm interested in alternate energy.
SPX
No more POMO? Well....
http://99ercharts.blogspot.com/2010/12/spx_02.html
http://www.zerohedge.com/forum/99er-charts
Let's see how well the POMO dump correlates with U.S. equity market performance.
After all, this can now be tracked in real time, essentially, intraday.
It doesn't correlate well with end of day results, but I would be curious to see if it correlates on a smaller timeframe.
Interesting development with blocking a recently auctioned treasury from being re-purchased. A token gesture to keep those of us screaming "monetization" off their backs?
Imagine what happens when the banks are mostly depleted of treasuries on their balance sheets due to QE, but loaded with commodities/stocks/junk bonds, etc, and then the economy slows down again. The Fed is creating even more imbalances, and the moment that things turn for the worse, we will see a complete massacre in the risk market.
The fed is incompetent. Watch the
yield curve.
What are you watching for in the yield curve?
When the 10 year blows through
the 3.1% yield level, you will realize
Ben is lying about lowering long term
rates with QE2 just as he was lying
about not monetizing the debt.
Who do you think he works for?
what do you see making the 10 year rise even further from here? economic growth? default risk?
i don't think they will allow the 10 year to rise much further because of the pressure it puts on the housing market.
Yes, But there is pathetic volume. Does that make you feel any better? Who gives a fuck anymore. Its simple, Dont short.
Amzn, pcln, cmg, nflx, lvs all down. All the shit that gets pumped beyond any reason. Something is going on.
Market won't old today's gains.
if the EUR-USD holds its gains, the market will too (unfortunately). i'm long SPXU (ouch) and short NFLX via puts (yeah) as of close yesterday.
I haven't seen a cleaner bubble chart than NFLX. Take a look at previous peaks 04/26 05/13 08/17 09/30 10/27. All buying exhaustion. Just like yesterday's exhaustion, today was a given to be down, I wrote a day trade message about that yesterday. I will be out of the entire position by today.
I've been short for the past few months, and it's been a LONG few months. However, I still think time is running out on the rally and I'm gonna hold on. We'll see....
I was fooled by Consumer Metrics data, which is completely at odds with what we're seeing right now out of the consumer. Disappointing.
when the huge dump arrives, it'll be overnight as it was in 2008. 10X worse!
Brian Sack hands out free taxpayer
money to the PDs but he and Bubbles
Bernanke are incompetent at holding
rates down anywhere along the yield
curve now. They are complete asshats.
Very difficult to be short the market with Funds chasing, FED, and most likely deal on tax cuts and unemployment. I am waiting until March and just picking up any dips on FCX and Silver.
"Brian Sack forbids instantaneous monetization"?
Yes, he now requires the PDs to inhale first!
There's just no economic activity that comes closer to revealing truth about dysfunctional markets than arbitrage. When you have to use the coercion powers of the state to prevent that arbitrage, yea verily, you have publically had sex with the poodle!
SPX
Ben gets his Cohiba!
http://99ercharts.blogspot.com/2010/12/spx_8778.html
http://www.zerohedge.com/forum/99er-charts