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Brian Sack Sneaks A Fast One: 20% Of Today's Long-End POMO Monetization Is 30 Year Auctioned Off Last Month
After in the last two POMOs Brian Sack put the most recently issued bond on the exclusion list, today, as part of today's micro $2.044 billion long-end (2028-2040) POMO, the PPT head tried to sneak a fast one, after the second most monetized issue ended up being the QL5 of 11/15/2040, which just happens to be the bond auctioned off less than a month ago (November 10). This amounts to 2.6% of the entire $16 billion auction. We are confident that before all is said and done, not only will the 35% SOMA limit be raised on this 30 year CUSIP, but the Fed will be the proud owner of well over half of any and all recently issued long-end bonds.
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Farcist monetary policy really picking up speed now....
(obligatory)
http://www.youtube.com/watch?v=n6qo2S84r5w
Maybe he meant something like this.
I shall drink no wine..., until I can get the damn cork out.
Get'em while their hot?
Hot off the presses?
Yes, Brian Sack pulls a fast one.
His friends call him Sackman...cuz he's got a huge sack!
We will no monetize the debt. The recession is over. GDP will grow. Recovery!
So what?
That's what Sackman said. He also said, "Monetize this!" as he flipped US Treasurie bond holders the bird.
Sarcasm on.
"Medicate medicate. Soon may start buying GE bonds, GM stocks, and GS anything. Oh no, wait. GS buys us." - The Fed.
Sarcasm off now. Disgust and futility back on.
Markets doing the zombie-walk thing all day until the usual last few minute POMO scrap pump as usual...real tired of the Farcism.
I realize this isn't a unique or particularly insightful, but I do believe one of the reasons MoneyPrinting3 (otherwise known as QE2) was commenced was because China told .gov that they no longer wanted to buy long-term UST's. It is in fact a 'needed' monetization of debt, since otherwise there would be little to no demand for long-term US paper.
Right now we're sucking all the fresh water out of Lake Michigan and shipping it to China. No shit.
So, to prevent a dump of T-Bills from China, Japan, or anyone else with a lot of treasury bills, the Fed is planning to buy them back? Or is that not yet the case already?
Actually, if we drop their limit of SOMA 35%, let them buy as many treasury bonds they can, and then we just say to the fed- Ain't our problem and tell them to suck it up since they caused it.
If enough T-bills get bought back by the Fed, we give them a 99% haircut.
Obviously I haven't studied in the "field" of economics, so....
This is how the free market operates.
Wrong. There would be plenty of demand, it just wouldn't be at the price that these assholes wish to sell the debt at. Price discovery works.
<quote> but the Fed will be the proud owner of well over half of any and all recently issued long-end bonds.
Just a stopping-point along the way until they have to buy 100% of them, since there will be nobody else that wants them.
When the long end is 100 year's that is when we will know the Bond market is about to y-plode. Goldman's test-run was oversubscribed I believe (Ha!).
America 2110. Trippy thought. World 2110 is trippier still.
I think we might see the new series be launched next week. Negative yields... of course!
ORI
http://aadivaahan.wordpress.com
timmay has a blog?
Damn, almost forgotten, it is POMO day! Yeah this is how much I care about the Sackman and his "team"!
Everyday is POMO day until every hour becomes POMO hour at this rate.
TD: This current POMO schedule ends Thursday. Do you know when we can expect the next schedule to be announced?
.,
Tentative Outright Treasury Operation Schedule
Muchas gracias, mon frere.
FED site says 2pm Friday
Sack snuck one in?
Hmmm ;)
The Sackman is buying it for less
than it was auctioned for.
Actually, it's a close call. Maybe about
the same price it was auctioned for.
The Ben Bernank can't let the 30 year get away from him. Back in the 1990's (at Band Camp) the long end of the Yield Curve was actually set by the market. How far we have fallen. I miss the market so much it hurts.
Common Sense: the 30 year is the most vulnerable to market conditions, so The Ben Bernank will do whatever he can to keep the wolves at bay.
Why don't they just call it the 28 day bond? This way they could get alot more buyers in on the PONZI!
LOL. 28 day ineffective circle jerk.