Fed Buys $5.9 Billion Of Recently Auctioned 5 YearTreasuries

Tyler Durden's picture

As part of today's $7 Billion Treasury OMO by the Fed, $5.9 billion of recently auctioned off 5 Years were purchased.

Note the highlighted CUSIPs:

912828KY5 is the 5 Year auctioned off on June 24, $40 billion offered, $11 billion of which was accepted by primary dealers. And poof - now they hold just a little over 50% of this issue (and we have not checked how much may have been repurchased in prior OMOs).

912828KV1 is the 5 Year auctioned off on May 27, $25 billion offered, $18.5 billion of which went to primary dealers.

It seems the Fed today is particularly concerned with thee 5 year point.

So, yes, we will have QE phasing out... But not yet.... not yet!

In the meantime -auction closed at 11am... And here is the market reaction:


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AnonymousMonetarist's picture

Piacere. It is a deep and moving honor to discuss the waste mangement business with all of youze.

phaesed's picture

Well, they want to move people back into risk and those 5 years had a juicy yield for an inversely correlated asset at 2.8%.... What remains to be determined is whether this will be the top or not. While I think the US can throw more cash at the problem, we've got too many cycles converging at the moment and China's bubble has been popped like Haynes' bottom will be will be later this year.... with a baseball bat. It really depends how everything goes down during Ramadan next week, most of the Street will be off on Vacation and I could see the markets running up and forming a solid double top that will get popped, but I'm not that prescient.

logistics's picture
logistics (not verified) phaesed Aug 17, 2009 12:55 PM

Someone has to lose money, and our goverment has decided to let the small mom and pop stores take the brunt of the losses.

phaesed's picture

Well them and the pitifully trained financial advisors who learned the canned "CFA" strategies of letting inflation be mistaken for performance. Manage your own money people, avoid the idiots.

mgarrett84's picture

This was my catalyst to take down -delta and sell some downside volatility.  (totally expected)

deadhead's picture

thanks for keeping the heat on these phucks TD.

if you want a good chuckle today, look at denninger....his "talf" extension intro is absolutely priceless....i howled with laughter!

mgarrett84's picture

I dont think you can be mad at them.  They are doing the only thing they can.   The alternative is much more painful. I thank them for their actions.  (there is an outside chance it may even work).  Just need to up the dose of lithium into the water supply (lol). 

Assetman's picture

I almost totally agree with you, mgarret. 

My only wish is that they could be more transparent about what they are doing... they probably can't do that either, as what they are trying to pull off is in the grey areas of the law.

If you happen to find you a supply of lithium, could you send some to Colorado for us?  Thanks!


mgarrett84's picture

If they are more transparent it will defeat any expectations tweeking and psychological games that can help the effort.  Plus myself and every other PM and trader douchebag will fade the hell out of what they are doing.  


Its a rough game balancing a bearish macro view and the hopes that we are successful in rescuing the economy.  Almost like I am rooting against myself.  

I'll let you know if I unearth any lithium deposits  ( in the meantime you can always smoke a cuban, they are full of the stuff). 

Anonymous's picture

I agree with Denninger - Obama should be impeached for letting this circus continue.

Worse, it's very possible it is being continued on Obama's express orders.

asdfg's picture
asdfg (not verified) Aug 17, 2009 11:46 AM

 Goldman diligintly bidding up stocks again..damn it

Blunt's picture

They play this game to downside as well.  bid them up a little, then sell them hard.

Anonymous's picture

Denninger link?

Anonymous's picture

I am Ben the Monetizer, feel my power!

Anonymous's picture

If GS, PPT, etc are So Damn Powerful - please explain why They allowed the events of Oct 2008-Mar 2009 to happen?

Anonymous's picture

Because they are powerful?

Ducky's picture

the events happened because the Octavian Squid wanted them to happen

logistics's picture
logistics (not verified) Aug 17, 2009 5:38 PM

is Puryear really Uniquineth? - I mean in the true sense of the queens english ?

good articles; good articles 4 slow news day ..http://www..
hat tip: finance news & finance opinions

Anonymous's picture

oh yeh,

we are going to clean up our balance sheet real soon......

yeh sure. i will believe it when i see it with these crooks.

Anonymous's picture

i just went long printer ink

Ben will have to start buying from me in 6 months

Eduardo's picture

the solution to this is so simple that I can't believe helicopter Ben did not came up with a solution already. Just change the definition of CUSIP !