"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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doomandbloom's picture

whats happening with Wikileaks? are they going to leak anything? what about the 2000 names or anything important...

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.

spekulatn's picture

"The meatball says ask again later."



asdasmos's picture

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?

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.

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.

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.

digitlman's picture

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

HamyWanger's picture

I own several consumer discretionary retail stores.

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

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!

asdasmos's picture

digitlman is really biting at this one,


he is a troll ma man

digitlman's picture

You'd be surprised how much the two handles look the same on a 24" LCD.

asdasmos's picture

I know he got me too for a sec,


With him now, I always have to double check,



bunkermeatheadprogeny's picture

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

spartan117's picture

That's Hamy, not Harry.  Hamy is Harry's personal troll.

digitlman's picture


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

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.

potatomafia's picture
by HamyWanger
on Mon, 01/31/2011 - 11:25


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.

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.

hedgeless_horseman's picture

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

...because it just doesn't matter.


Get your shorts on!

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...

Horatio Beanblower's picture

Brent crude at $99.90.

hedgeless_horseman's picture

Broke $100.  Put on your Brent Crude Futures $100 hats.

Prof Gulliver's picture

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..

Mr Lennon Hendrix's picture

I can not believe the Majors and the Treserve are still getting away with burning the currency that backs the current economy.

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? 

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.



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.

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?

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.

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.

HamyWanger's picture

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

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?

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 ?

savagegoose's picture

how about  "cash flow positive policy"

buzzsaw99's picture

Daylight robbery.

Mr Lennon Hendrix's picture

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

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?


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

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


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

     Just food for thought, fellas!

whatsinaname's picture

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