First POMO Of 2011 Closes As Sack Buys $7.8 Billion Of 2018-2010 Bonds; PDs Refuse To Flip Underwater Positions
And so the first POMO of 2011 is in the history books. Brian Sack just bought $7.79 billion worth of bonds with a maturity between 2018 and 2020. At just a 2.2 submitted to accepted ratio, this was yet another auction in which the PDs had more than enough cash in advance, and did not need the Fed's generosity. Incidentally, Brian Sack put the most recent 10 year issuance, the PC8s of 11/15/2020, which were the auctioned off security in both November and December's reopening, on the exclusion list, and the one issued just before that, the NT3s of 2020, saw exactly zero bids confirming that even PDs need to have an apriori profit before they flip a given bond.
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