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
Range
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