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"Flip That Bond" Continues: Primary Dealers Offload 26% Of Just Acquired 3 Year Auction Back To Fed

Tyler Durden's picture





 

In today's episode of "Flip That Bond", the Primary Dealers succeeded in flipping a whopping 26% of the just auctioned off 1% of 1/25/2014 (912828PQ7) back to the Fed. Today's POMO has closed with $7.720 billion in bonds maturing between 2013 and 2014 monetized by Sack Frost, of which, and this should come as no surprise to anyone, the bond most put back to the FRBNY, to the tune of $3.7 billion or 48% of all, was PQ7. Keep in mind that the PD take down in this bond was $14.2 billion. Just two weeks later the Primary Dealers have reduced their positions in this most recent auction by 26%. In other news, there is no monetization. And Tim Jeethner pays his taxes.

 


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Mon, 01/31/2011 - 12:18 | Link to Comment doomandbloom
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whats happening with Wikileaks? are they going to leak anything? what about the 2000 names or anything important...

Mon, 01/31/2011 - 12:29 | Link to Comment HelluvaEngineer
HelluvaEngineer's picture

Haha.  You made a funny.

Mon, 01/31/2011 - 13:08 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

The Swiss account release was weak sauce.  Assange is a blow hard.  CIA did not want to crash Bac with a leak on Mortgage Fraud or a leak on silver manipulation by JPM on the COMEX.  No, they wanted to start food riots so that the third world would be blamed for the next crISIS.

Mon, 01/31/2011 - 13:06 | Link to Comment spekulatn
spekulatn's picture

"The meatball says ask again later."

 

 

Mon, 01/31/2011 - 12:33 | Link to Comment asdasmos
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I wonder what they will call the next QE, 'QE3' is an obvious one.

If 'QE3' is not politically viable, what other economic doublespeak terms could they come up with?

Mon, 01/31/2011 - 12:35 | Link to Comment luk427
luk427's picture

QE2.1 LITE

Mon, 01/31/2011 - 12:44 | Link to Comment Quintus
Quintus's picture

It won't be called anything.  Contrary to popular belief QE2 is an open-ended arrangement that'll continue for as long as Ben wants it to in the absence of a specific decision to end it.  All Ben said when QE2 was launched, is that it will initially run until June 2011 and may end there, if things all work out as planned and no further printing is needed.

I would expect that when the time comes, The Bernank will make it known that the conditions are not right to end QE2 and therefore it will continue for another x months at $y per month.

Mon, 01/31/2011 - 12:48 | Link to Comment asdasmos
asdasmos's picture

Fair enough, noted. ty

Mon, 01/31/2011 - 12:21 | Link to Comment John McCloy
John McCloy's picture

Haha..I feel The Jeether is another one of those words that has just been added to the ZH terminology list for all eternity.

Mon, 01/31/2011 - 12:25 | Link to Comment HamyWanger
HamyWanger's picture

Are you saying quantitative easing and POMO are a bad thing???

Without QE, the economy would have completely collapsed. Instead, we have stock market growth and global economic growth (i.e. economic recovery).

The only thing that could spoil the recovery is inflation, but we are not seeing any of this yet, and likely never.

Mon, 01/31/2011 - 12:25 | Link to Comment digitlman
digitlman's picture

You got to be fucking kidding me. Have you been out to buy groceries in the last few months, asshole?

Mon, 01/31/2011 - 12:27 | Link to Comment HamyWanger
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I own several consumer discretionary retail stores.

If there was inflation in buying prices, believe me, I would see it.

Mon, 01/31/2011 - 12:30 | Link to Comment digitlman
digitlman's picture

Do you deal in food? I'm guessing not.

The other game they play is "the price stays the same, but the package gets smaller". See, the price is the same as it ever was! No inflation here!

Mon, 01/31/2011 - 12:32 | Link to Comment asdasmos
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digitlman is really biting at this one,

 

he is a troll ma man

Mon, 01/31/2011 - 12:34 | Link to Comment digitlman
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You'd be surprised how much the two handles look the same on a 24" LCD.

Mon, 01/31/2011 - 12:36 | Link to Comment asdasmos
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I know he got me too for a sec,

 

With him now, I always have to double check,

HamyWanger

HarryWanqer

Mon, 01/31/2011 - 12:44 | Link to Comment bunkermeatheadp...
bunkermeatheadprogeny's picture

consumer discretionary = adult video, dildo & pocket rocket shop.

Mon, 01/31/2011 - 12:46 | Link to Comment plocequ1
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Dont forget RonJeremy.com

Mon, 01/31/2011 - 12:28 | Link to Comment spartan117
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That's Hamy, not Harry.  Hamy is Harry's personal troll.

Mon, 01/31/2011 - 12:31 | Link to Comment digitlman
digitlman's picture

Do'h!

I didn't see that! Well, why bother arguing with either one of them, anyway? LOL!

Mon, 01/31/2011 - 12:26 | Link to Comment traderjoe
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Hamy!

Mon, 01/31/2011 - 12:32 | Link to Comment TWORIVER
TWORIVER's picture

Hamy, you and RoboTradersMom are the best posters on this site. You may even be the same person. It's great when someone responds to you like you are Harry. Priceless, thanks for the laughs.

Mon, 01/31/2011 - 13:48 | Link to Comment potatomafia
potatomafia's picture
by HamyWanger
on Mon, 01/31/2011 - 11:25
#920536

 

Are you saying quantitative easing and POMO are a bad thing???

Without QE, the economy would have completely collapsed. Instead, we have stock market growth and global economic growth (i.e. economic recovery).

 

 

Not sure if you are serious or not...  but you are wrong.  The price structure of the economy would have changed and debts renegotiated.  The only thing that would have collapsed is the government lies and promises.

Mon, 01/31/2011 - 12:42 | Link to Comment plocequ1
plocequ1's picture

Wake me up when this cant be done anymore. The market is up.  In the mean time, Life is good. As long is the POMO business is in full vigor, Nothing to see here. Move along.

Mon, 01/31/2011 - 12:38 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

That is just the attitude we don't need...

...because it just doesn't matter.

http://www.youtube.com/watch?v=g3S_k1dRbXY

Get your shorts on!

Mon, 01/31/2011 - 12:28 | Link to Comment jus_lite_reading
jus_lite_reading's picture

Does anyone care one bit anymore? Illegal activity is celebrated. The only way to get ahead in life, is to be a fraud...

 

Nothing will ever change until the whole world blows up...

Mon, 01/31/2011 - 12:29 | Link to Comment Horatio Beanblower
Horatio Beanblower's picture

Brent crude at $99.90.

Mon, 01/31/2011 - 12:48 | Link to Comment hedgeless_horseman
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Broke $100.  Put on your Brent Crude Futures $100 hats.

Mon, 01/31/2011 - 12:32 | Link to Comment Prof Gulliver
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Quantitative Easing? More like Quantitative Fleecing -- of the sheeple, of course, who get nothing on their savings, which works out well because they need all their money to pay for those core-inflation items that are redacted from Ben's Excel 97 spreadsheets..

Mon, 01/31/2011 - 12:33 | Link to Comment Mr Lennon Hendrix
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I can not believe the Majors and the Treserve are still getting away with burning the currency that backs the current economy.

Mon, 01/31/2011 - 12:34 | Link to Comment Johnny Lawrence
Johnny Lawrence's picture

Why even bother having Treasury auctions?  Can't the Fed just print the money and transfer it directly into the accounts of the PDs? 

Mon, 01/31/2011 - 12:34 | Link to Comment Oh regional Indian
Oh regional Indian's picture

Sack Frost anagram

Cast Forks/Casts Fork

Fork it over.

Fork on the road.

Fork this shoot.

Allis well down the rabbit hole, which is a well, if you figure ate if lee, of course.

ORI

http://aadivaahan.wordpress.com/2010/12/24/where-do-we-fit/

Mon, 01/31/2011 - 12:35 | Link to Comment RobotTrader
RobotTrader's picture

Gold stocks seem to be pricing in deflation at the moment.

Eric Sprott, Jim Rickards, Eric King, et al

They must be puking up blood today.

Mon, 01/31/2011 - 12:49 | Link to Comment asdasmos
asdasmos's picture

They are in for the long haul, so mabye the day to day or even month to month activity is not necessarily a concern.

 

What about a year or two from now?

Mon, 01/31/2011 - 13:09 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Meh, spot silver is up..

Mon, 01/31/2011 - 12:35 | Link to Comment John McCloy
John McCloy's picture

So when does the market begin selling off in anticipation of QE/POMO ending in June? We saw what happened the last time there were no Bennies being digitized.

Mon, 01/31/2011 - 12:39 | Link to Comment Prof Gulliver
Prof Gulliver's picture

The perpetual-motion POMO machine will not end in June. The Bernank has made that clear, or more specifically the Goldman Sack and the JP Morgue have made that clear to Ben.

Mon, 01/31/2011 - 12:43 | Link to Comment plocequ1
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>

Mon, 01/31/2011 - 12:40 | Link to Comment HamyWanger
HamyWanger's picture

QE and POMO will never end. It will be extended forever in June.

Mon, 01/31/2011 - 12:43 | Link to Comment asdasmos
asdasmos's picture

You may actually be right on this one Hamy.

 

It just will not be as obvious as you make it out to seem.

 

How will the huge deficits be financed otherwise?

Mon, 01/31/2011 - 12:39 | Link to Comment user2011
user2011's picture

Well, this seems to be the HyperInflation of the US dollar is coming.    Isn't that means buying stock now is good ?  

The black swan article yesterday saying the Japanese stock market is going to skyrocketed when HyperInflation take place.  

So, should I load on the dow index ETF ?

Mon, 01/31/2011 - 12:40 | Link to Comment bunkermeatheadp...
bunkermeatheadprogeny's picture

Grrr.

Mon, 01/31/2011 - 12:43 | Link to Comment savagegoose
savagegoose's picture

how about  "cash flow positive policy"

Mon, 01/31/2011 - 12:44 | Link to Comment buzzsaw99
buzzsaw99's picture

Daylight robbery.

Mon, 01/31/2011 - 13:11 | Link to Comment Mr Lennon Hendrix
Mr Lennon Hendrix's picture

After the midnight recovery (the recovery that wasn't).

Mon, 01/31/2011 - 13:05 | Link to Comment alter ego
alter ego's picture

Strange things are happening in the last hours (beside Middle East Revolutions and Potential Mega Typhoon in Australia).

Please see:

1) Is Something Serious Up at Treasury?

http://www.economicpolicyjournal.com/2011/01/is-something-serious-up-at-treasury.html

2) Clinton convenes mass meeting of U.S. ambassadors

Top envoys from America's 260 embassies, consulates and posts to meet Monday

http://www.msnbc.msn.com/id/41349708/ns/politics-white_house/

I don't know you, but me think something serious is brewing.

     Just food for thought, fellas!

Mon, 01/31/2011 - 13:49 | Link to Comment whatsinaname
whatsinaname's picture

Soon there will not even be food for thought - DBA skying higher !!

Do NOT follow this link or you will be banned from the site!