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Fed Releases New POMO Schedule: To Monetize Only $97 Billion In Bonds Through May 11
And now the one all the Fed frontrunners have been waiting for... (with a 40 minute NYU intern induced delay)
Across all operations in the schedule listed below, the Desk plans
to purchase approximately $97 billion. This represents
$80 billion in purchases of the announced $600 billion purchase program
and $17 billion in purchases associated with principal payments from
agency debt and agency MBS expected to be received between mid-April
and mid-May.
As we had expected, the QE Lite component ($17 billion) is plunging due to a substantial halt in MBS prepays with the Fed. Time to lower our estimate even further on how much the Fed will monetize simply from rolling maturities and MBS prepays.
| Operation Date1 | Settlement Date | Operation Type2 | Maturity Range |
Expected Purchase Size |
| April 13, 2011 | April 14, 2011 | Outright Treasury Coupon Purchase | 10/15/2012-09/30/2013 | $4 - $6 billion |
| April 14, 2011 | April 15, 2011 | Outright Treasury Coupon Purchase | 05/15/2018-02/15/2021 | $6 - $8 billion |
| April 15, 2011 | April 18, 2011 | Outright Treasury Coupon Purchase | 04/30/2015-09/30/2016 | $5 - $7 billion |
| April 18, 2011 | April 19, 2011 | Outright Treasury Coupon Purchase | 08/15/2028-02/15/2041 | $1.5 - $2.5 billion |
| April 19, 2011 | April 20, 2011 | Outright Treasury Coupon Purchase | 10/31/2013-03/31/2015 | $5 - $7 billion |
| April 20, 2011 | April 21, 2011 | Outright TIPS Purchase | 04/15/2013-02/15/2041 | $1 - $2 billion |
| April 25, 2011 | April 26, 2011 | Outright Treasury Coupon Purchase | 10/31/2016-03/31/2018 | $6 - $8 billion |
| April 26, 2011 | April 27, 2011 | Outright Treasury Coupon Purchase | 05/15/2021-11/15/2027 | $1.5 - $2.5 billion |
| April 28, 2011 | April 29, 2011 | Outright Treasury Coupon Purchase | 04/30/2015-09/30/2016 | $5 - $7 billion |
| April 29, 2011 | May 2, 2011 | Outright Treasury Coupon Purchase | 10/31/2013-03/31/2015 | $5 - $7 billion |
| May 2, 2011 | May 3, 2011 | Outright Treasury Coupon Purchase | 05/15/2018-02/15/2021 | $6 - $8 billion |
| May 3, 2011 | May 4, 2011 | Outright Treasury Coupon Purchase | 11/15/2016-05/02/2018 | $6 - $8 billion |
| May 4, 2011 | May 5, 2011 | Outright TIPS Purchase | 04/15/2013-02/15/2041 | $1 - $2 billion |
| May 5, 2011 | May 6, 2011 | Outright Treasury Coupon Purchase | 08/15/2028-02/15/2041 | $1.5 - $2.5 billion |
| May 6, 2011 | May 9, 2011 | Outright Treasury Coupon Purchase | 11/15/2013-04/30/2015 | $5 - $7 billion |
| May 9, 2011 | May 10, 2011 | Outright Treasury Coupon Purchase | 05/15/2018-02/15/2021 | $6 - $8 billion |
| May 10, 2011 | May 11, 2011 | Outright Treasury Coupon Purchase | 05/15/2015-10/31/2016 | $5 - $7 billion |
| May 11, 2011 | May 12, 2011 | Outright Treasury Coupon Purchase | 11/15/2016-05/02/2018 | $6 - $8 billion |
»
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"As we had expected, the QE Lite component ($17 billion) is plunging due to a substantial halt in MBS prepays with the Fed."
Tyler, what's it like to live in a permanent state of deja vu as you study data, see things, report them, and then watch them happen?
Huh. Wonder what Rickards has to say now http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/3/11_Ji...!.html
Rickards is so off base. It doesn't matter if the Fed maintains the size of their current balance sheet. To sustain this charade of a recovery, they need to GROW their balance sheet. Reinvesting principal paydowns and expiring debt ain't gonna cut it.
They stop growing their balance sheet and the market starts cratering, followed quickly by the real economy.
Ghost....you are exactly right. Well stated!
i dont see how they can possible stop QE2 even for a little while...
Yeah i dont get how they could really believe that ending QE wouldnt result in anything but cratering of all markets and slowdown in the economy.
Rickards made sense because he said ending QE was just a diversion and not true which makes sense because you dont want to extend QE and have the US bond and dollar to unravel.
But 17 billion isnt enough to substantiate Rickards theory?
Anyone with any ideas?
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ben, i swear we dont monetize
I'm glad the Fed is accountable for their actions...
Even if the metals come down, its still sound money.
The mining shares sure bite when the PM's come down though...
DP
Looks like the training wheels will be off the FED retards bicycle pretty soon. Im betting lots of band aids and gauze and splints will be needed.
No way Dog. They'll just need to renegotiate E. Burnett's contract over at the BlowHorn [CNBC] to be on more hours during the day...so that her adorableness gives more buoyancy to the markets. Simple.
More stories about burritos and leotards!
Erin Burnett in a leotard.
Mmm, leotard...
This is unacceptable. The owners are displeased. Try again.
Put Niedermeyer on it. He's a sneaky little shit.
How much of the $600B left after this?
Is this a trick question?
I shouldn't snark, but QE to infinity.
Tis a deal with the Devil, the Father of Lies.
Really light at the back end of the curve, but I guess what they do not monetize, the PDs will just flip back to the Fed.
This everything is too stupid for words.
The non-uniformity of the activity just hints at manipulation doesn't it?
Why are some days 6-8 and others 1.5-2.5, I would like to have this clarified,
The want the indirects to own as much long term debt as possible.
Greenwave ?
Yes, TU
how highs the water momma?
I am a NOLA ex-pat
sorry, whats NOLA?
What's left of New Orleans.
14.3 trillion feet high and rising
the jobs don't grow
there's nothing to sow
better go and blame it all on the snow
14.3 trillion feet and rising......
How high's the water Papa?
We are going to see 5% on the Ten Yr US Tsy and Dow 8k in 2011.. 30 Yr Bond Mkt Bull run over.
vc
With inflation raging like a dungeon dragon pensions need Dow equities to stay above 11k. Bernanke will do everything imaginable to keep the fiat ponzi rolling downhill, even if that means having The President's Working Group on Financial Markets owning every share of equity on market and a lot of corporate debt too, not to mention MBS, T bills, bonds, precious metal short positions, etc.
If he purchases my lousy stamp collection I'll get on board.
I'm buying Calls on TBT
Any suggestions on the time structure of those calls??
Damn - Perhaps Ben & The Fed are a little fatigued, I mean, when you are so ambitious that you execute the ultimate fraud with zeal attempting to subjegate as many people to poverty as you possible can in the least amount of time, well, that can wear on even the most criminally motivated....I think da Bernank needs to speak with a few Super Market owners - they can introduce him to "Double Couponing' - Twice the taxpayer losses in half the time - even Adam Smith would admire such efficiency - after he stopped vomitting out of disgust - Ben Bernanke you are inhuman - it is people like you who remind me why liberty requires eternal vigilance!
Funny how they were already wearing helmets, elbow and knee pads before they got near the bike...
dammit!! what the hell does that mean!! please, for the layperson here, in a nutshell, what are the implications of these POMO readings????!!!
12,263.60
-117.53 (-0.96%)
Nasdaq
2,744.79
-26.72 (-0.97%)
S&P
1,314.16
-10.30 (-0.78%)
Looks like it was priced in.. down 117.53 or almost 1%... POMO we need more POMO or CowBell?? I forget which.guys, the point of this announcement today is that there are only 20bn remaining in the QE2 program after this 80bn is purchased. prepare for QE2 to end on or around may 18.
thanks lettuce.
It's over and didn't work: get busy, Ron Paul!
So, does this mean that the markets rally through 5/12?
That......... would be the relevant question.
And in further news, the Federal Reserve, a privately held company with no reserves, declared bankruptcy...
Now THATS monetizing the debt!
Damn - Perhaps Ben & The Fed are a little fatigued,642-504 test I mean, when you are so ambitious that you execute the ultimate fraud with zeal attempting to subjegate as many people to poverty 642-165 test as you possible can in the least amount of time, well, that can wear on even the most criminally motivated....I think da Bernank needs to speak with a few Super Market owners - they can introduce him to "Double Couponing' 646-364 test - Twice the taxpayer losses in half the time - even Adam Smith would admire such efficiency - after he stopped vomitting out of disgust - Ben Bernanke you are inhuman - it is people like you who remind me why liberty requires eternal vigilance!
Finding and shorting Chinese frauds is turning into a nice little cottage industry. Soon everybody is going to be looking for their own.
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