Fed Releases Final POMO Schedule: $60 Billion And Scene

Tyler Durden's picture

The Fed just released the final POMO schedule which completes QE2: the total amount of bonds to be monetized will be $60 billion (at the upper end of the range) and with that the QE2 portion of monetary stimulus is over. Notably, there will be two POMOs on June 20. What is interesting, is that the Fed will continue the QE Lite portion as expected, with what appears to be a modest weekly POMO to the tune of $3.5 billion on July 6 and July 11, meant to replenish the bonds that mature and prepaid MBS. Alas, as the total notional shows, and as Zero Hedge expected, the $7 billion in two weeks is woefully inadequate to provide the Shadow QE that many have expected. It is interesting that as part of QE Lite the Fed will focus on what appears to be the 4-5 years part of the Curve.

And the complete breakdown:


Operation Date1 Settlement Date Operation Type2 Maturity
Expected Purchase Size
June 13, 2011 June 14, 2011 Outright Treasury Coupon Purchase 08/15/2018 - 05/15/2021 $4 - $5 billion
June 14, 2011 June 15, 2011 Outright Treasury Coupon Purchase 12/15/2012 - 11/30/2013 $2.5 - $3.5 billion
June 15, 2011 June 16, 2011 Outright Treasury Coupon Purchase 12/31/2016 - 05/31/2018 $4 - $5 billion
June 16, 2011 June 17, 2011 Outright Treasury Coupon Purchase 06/30/2015 - 11/30/2016 $4 - $5 billion
June 17, 2011 June 20, 2011 Outright TIPS Purchase 04/15/2013 - 02/15/2041 $1.5 - $2.0 billion
June 20, 2011 June 21, 2011 Outright Treasury Coupon Purchase 08/15/2018 - 05/15/2021 $4 - $5 billion
June 20, 20113 June 21, 2011 Outright Treasury Coupon Purchase 12/31/2013 - 05/31/2015 $4 - $5 billion
June 21, 2011 June 22, 2011 Outright Treasury Coupon Purchase 12/31/2016 - 05/31/2018 $4 - $5 billion
June 23, 2011 June 24, 2011 Outright Treasury Coupon Purchase 08/15/2021 - 11/15/2027 $1 - $1.5 billion
June 24, 2011 June 27, 2011 Outright Treasury Coupon Purchase 12/31/2013 - 05/31/2015 $4 - $5 billion
June 27, 2011 June28, 2011 Outright Treasury Coupon Purchase 06/30/2015 - 11/30/2016 $4 - $5 billion
June 28, 2011 June 29, 2011 Outright Treasury Coupon Purchase 08/15/2018 - 05/15/2021 $4 - $5 billion
June 29, 2011 June 30, 2011 Outright Treasury Coupon Purchase 08/15/2028 - 05/15/2041 $2 - $3 billion
June 30, 2011 July 1, 2011 Outright Treasury Coupon Purchase 12/31/2016 - 06/30/2018 $4 - $5 billion
Completion of $600 Billion Purchase Program
July 6, 2011 July 7, 2011 Outright Treasury Coupon Purchase 01/15/2014 - 06/30/2015 $2.5 - $3.5 billion
July 11, 2011 July 12, 2011 Outright Treasury Coupon Purchase 07/31/2015 - 12/31/2016 $2.5 - $3.5 billion

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TruthInSunshine's picture

QE2 so fine

Risk never felt so sublime

QE3 be thine?

It's not like the insiders are wondering if QE3 or a similar program (that will further wreck the real economy) will be summoned or whether it will even bring similar delicious fruit to TBTF & Fraud Street.

If the answer is no to either question, they'll do just as fine on the flip trade.

It's good to be in the good graces of the king.


etrader's picture

Waiting for Advisory Notice out of cme with "current exchange  order issues"

spartan117's picture

Who's going to subsized the Federal government now that the Fed is done?  Can any deflationist tell me where we will get an extra $600 billion per year to cover our deficit spending?  China?  Japan?  Germany?  Pee Wee Herman?

Dr. No's picture

Once they've purged the federal pension fund, I am not sure where what they eat next.

LawsofPhysics's picture

401ks and any fixed rate investments, then price fixes and limits on withdrawal.  Funny thing is, even thought the paper will be worthless, you won't see much of it around.

SheepDog-One's picture

$600 billion isnt that just barely enough to make the interest payments?

spartan117's picture

Wow, $1.6 trillion deficit planned for 2012.


$275 billion in interest payments. 

Let's triple interest rates and really get this party started. 

TruthInSunshine's picture

15 trillion in 'official' US Government debt that we're all paying interest on.

Good luck when the yield curve reverts to anything close to historic averages (and it will).

We're paying more in interest on the national debt now than the total amount that constituted the national debt in 1984.

Hey, 1984, that was a great novel!

camaro68ss's picture

I belive, if my math is correct, we are looking at 25% of the federal deficit is intrest alown! Mostly short term bonds. SWEETNESS!

LawsofPhysics's picture

Where?  why from everyone who lives in America, does business in America, banks in America and pays any sort of tax in America, although I expect it to be less organized than the collapse of the soviet union.  With some good old financial repression mixed in for good measure, government paper will be the only thing anyone will be "allowed" to invest in.

Hedge accordingly. 

John McCloy's picture

The banks if the get 2% reserve shakedown. Still without QE not happening which is why a controlled meltdown and more QE at the end of the year.
QE forever..check
0% rates forever...check
Fairytale accounting forever..check

American ponzi economy in a nutshell up until an event occurs that no amount of printing can overcome than all of the above just made the pain 2000 xs worse. Welcome to Foodstampistan.

JFK.4PREZ's picture

Luckily we will never run out of food... thanks to all the Americans playing farmville.

SheepDog-One's picture

Quite ironic how all the Facebook Farmville farmers will soon be starving to death because no way could they even grow an actual tomato in their back yard.

JFK.4PREZ's picture

and remember if they go for yours, dont forget to give them dessert too!... McFlurry of bulletz

jaffi's picture

I heard those a pretty good...

John McCloy's picture

It is the complete retardation of our culture. Fake food for a fake economy and millions of wasted hours that could be applied to actually learning. Nice name by the way.

SheepDog-One's picture

Crackhead Mr Market just smoked his last bowl and already in panic withdrawals...better get the rubber tarps and puke buckes NOW!

Dollar Bill Hiccup's picture

Good bye POMO, Good bye POMO, Good bye POMO, we hate to see you go ....

SheepDog-One's picture

I dont mind seeing POMO go, its about as welcome around here as cousin Eddy's 4 month Christmas visit.

Dollar Bill Hiccup's picture

I was thinking of the song we sang as kids when the opposing team lost. An emphatically obnoxious send off.

Dollar Bill Hiccup's picture

If I were a computer, would I be buying or selling here? Guess I'd be buying.

Dollar Bill Hiccup's picture

I don't know what they're buying with but they sure are buying dip here. Since I'm not a computer, I can only guess.

Excuse me while I go and vomit.

fuu's picture

Bitcoin is such a scam. Here let's invent a currency that is totally dependant on 2 utilities.

JollyRoger's picture

End of QE, Spotlight on Debt Ceiling, Eurozone sovereign crisis, Mid East Uprisings, Japanese Nuclear Disaster...........This summer is lining up to be a tipping point.  Me thinks there is room for another black swan before it's all said and done with.

JW n FL's picture

everyone ready?


everyone got their shit together?


Clear of the Market?


Cash on hand for buying distress?


Good Luck!

carbonmutant's picture

The POMO is dead, Long live the POMO...

TruthInSunshine's picture

POMO used to rule the world
Markets rose when it gave the word
Now in the morning traders sleep alone
Sweep the streets they used to own


One minute Bernank held the key
Next the walls were closed on him
And he discovered that Keynes castle stands
Upon pillars of salt and pillars of sand


For some reason Hayek can explain
Once you go Keynes there was never
Never an honest word
And that was when POMO ruled the world



Revolutionaries wait
For Dudley's head on a silver plate
Just a QE'eefing puppet on a lonely string
Oh who would ever want to be King?

Miles Kendig's picture

Why all the fuss over fiscal consolidation?  The US can just follow the UK and have fiscal consolidation to go with monetary easing.  No wonder this mechanism is the favorite of politicians & economists of nearly all stripes from socialists to ardent fiscal hawks.  Just look at Prime Ministers Cameron & Brown, or any other OECD nations "leadership" for guidance.

LawsofPhysics's picture

Well, maybe, but not so much with the russian and asian overlords that ignore human rights and simply take what they need from their people.  Yikes, that doesn't sound any better.

Dollar Bill Hiccup's picture

I would probably be happier if Groupon was good for Cheaperthandirt.

mynhair's picture

Just die, you pig Market!

Dollar Bill Hiccup's picture

Even Charlton Heston couldn't handle a zombie like this.

johngaltfla's picture

An homage to Dandy Don Meredith is in order.....


Turn out the lights the party's over they say that all good things must end
Let's call it a night the party's over and tomorrow starts the same old thing again

What a crazy crazy party never seen so many people
Laughin' dancin' look at you you're havin' fun
But look at me I'm almost cryin' but that don't keep your love from dyin'
Misery cause for me the party's over

Turn out the lights...

Once I had a love undyin' I didn't keep it, wasn't tryin'
Life for me was just one party and then another
Broke her heart so many times had to have my party wine
But one night she said sweetheart the party's over

Turn out the lights...

r101958's picture

Stretching it out into mid-July.

sbenard's picture

Thanks for pointing that out. I hadn't noticed. Goes to show how honest they are when they don't even keep their word about ending by June.

sbenard's picture

And now, for our final act, our daily POMO Pollyanna Party courtesy of about $6 billion of economic heroin injected daily by the Fed.

Go back to sleep, sheeple! Who cares about jobs? We have PRINTED prosperity now!

mynhair's picture

Roach Motel needs to break that repeller field on the mid Bol.

YHC-FTSE's picture


Many thanks.

wombats's picture

So does Ben also get a subscriptions to a few internet Porn sites too with all of that spending?

unununium's picture

This has got to be the most telegraphed market crash ever.

Plausible deniability when TSHTF.  "You had 2 years to move your 401k to the 'stable value' fund!"

[Of course that's stable in terms of FRN's only].

GOSPLAN HERO's picture

Bitch coins, bitchez!

YesWeKahn's picture

The next thing from the criminal FED would be HOMO

Healthy Orgasm monetary operation.

buzzsaw99's picture

the bernank ain't gonna meddle in the bond market with his pomo nomo. Yeah, right, whatever.

ThoughtCriminal's picture

"Sue the Fed

To: a) obtain revocation of the Federal Reserve’s charter; b) recover all paid in interest and other monies due for all living US Persons, companies and governmental bodies which were inappropriately obtained by the FRS; c) eliminate all Federal, State and Municipal Debts to the FRS, and d) obtain punitive damages for the payment of: 1) court costs and attorneys fees; 2) contingency fees for network litigators, and 3) pro rata distributions of the proceeds to the American Citizenry based on their loan history for the total years as are allowed by statute.


"Can we retroactively sue Congress for creating the Fed. That too is breach of contract, theft, fraud, misrepresentation, accepting bribes for personal gain, conflict of interest, passing important legislation in secret...

"Top 20 Potential Civil Causes of Action:Breach of Fiduciary Duty
Breach of Contract
Conducting a Ponzi Scheme
Tortuous Interference
Unlawful seizure of Account holders funds
Accounting malpractice
Fraud in the Inducement
Banking Fraud
Consumer Protection Fraud Detrimental Reliance
Gross Negligence
Unjust Enrichment
Failure to Perform
Deceptive Business Practices
Willful Infliction of Emotional Distress
Against Public Policy
Securities Fraud"


honestann's picture

I had a horrible nightmare.  Actually, it wasn't horrible until I woke up and realized what it meant.  Hahaha.

What was it?  That the ONLY reason the FederalReserve said "no more QE after QE2" was because they would not authorize increasing the federal debt above the congressionally mandated "debt limit".

Which means, the moment congress raises the limit by $2,500,000,000,000 or thereabouts, QE3 shall officially begin.

Gads... is that possible?

nathan1234's picture

To me there is some other game up their *( Ben & gang) sleeves.

IMHO some unexpected ( by the public) events are to change the entire landscape in the financial world.

There is no way that these ( Ben & gang) smartasses did not  know what would be the result of their policies and their criminal nexus with Wall Street and what would happen when their derivative bombs struck.

When is QE3, Fed meeting 22/23 June, Aug 2nd debt ceiling date etc are dates put into one's minds as a diversion.



Atomizer's picture

Federal Reserve table scrapes before the planned televised US media crisis begins.