Fed Announces Weak POMO Schedule, Only $97 Billion In Monetizations For The Next Month
The New York Fed has just released its latest POMO schedule for the upcoming month, and it may make some market members unhappy. Unlike the previous several monthly monetization dockets, this one will only see the Fed pump $97 billion in the market consisting of $80 billion in USTs from the QE2 mandate, and $17 billion in Treasurys due to MBS putback issues per QE Lite. This is $15 billion less than the last POMO schedule which saw $112 billion scheduled to be monetized. The schedule runs through March 9, and the next schedule will be presented on March 10 and 2 pm. There are no double POMO days in the current schedule. Of course, with $195 billion in incremental liquidity from the SFP program winddown, the Fed likely does not need to drown everything in its relentless liquidity.
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