Fed Monetizes $5.2 Billion In 2016-2017 USTs
Today's POMO is over, as the Fed monetizes $5.19 billion in 11 bond CUSIPs. The Submitted to Accepted ratio plunges once again, this time to 4.6x,
as the Fed is desperate to absorb ever more of what the PDs put to it. The money has already flowed through risk assets, and now the traditional POMO fade begins (although we have yet to hear if the SPY buy ins are proceeding as State Street has demanded, or if that wild card will still be pulled later today). The next thing to look for on the central bank intervention front is imminent BOJ intervention, now that the USDJPY is back to the critical 83 threshold level.