Fed Puts In $1.35 Billion In New Liquidity To Briefly Spike Stocks, Morgan Stanley Predicts 6 Out Of 8 Repurchased Cusips
Those puzzled by the recent pick up in stocks need not be puzzled much longer: today's POMO operation just closed, and the Fed just monetized $1.35 billion of bonds, an amount which apparently was enough to push stocks by about 0.5% higher, and see a slight sell off in Bonds as holders sold into the Fed's buyback. The submited to accepted ratio was a solid 12.8. Far more relevantly, Morgan Stanley continues to be on a roll in predicting precisely which bonds the Fed will monetize: today, Igor Cashyn got 6 out of the 8 repurchased issues correct. Frontrunning the Fed continues to be the most profitable trade.