This page has been archived and commenting is disabled.

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

Submitted by Tyler Durden on 01/31/2011 12:16 -0400

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.

- advertisements -

Mon, 01/31/2011 - 12:18 | 920518 doomandbloom

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

Mon, 01/31/2011 - 12:29 | 920576 HelluvaEngineer

Haha. You made a funny.

Mon, 01/31/2011 - 13:08 | 920754 Mr Lennon Hendrix

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 | 920746 spekulatn

"The meatball says ask again later."

Mon, 01/31/2011 - 12:33 | 920522 asdasmos

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 | 920604 luk427

QE2.1 LITE

Mon, 01/31/2011 - 12:44 | 920639 Quintus

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 | 920666 asdasmos

Fair enough, noted. ty

Mon, 01/31/2011 - 12:21 | 920533 John McCloy

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 | 920536 HamyWanger

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 | 920549 digitlman

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 | 920563 HamyWanger

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 | 920582 digitlman

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 | 920593 asdasmos

digitlman is really biting at this one,

he is a troll ma man

Mon, 01/31/2011 - 12:34 | 920603 digitlman

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

Mon, 01/31/2011 - 12:36 | 920610 asdasmos

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 | 920654 bunkermeatheadp...

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

Mon, 01/31/2011 - 12:46 | 920658 plocequ1

Dont forget RonJeremy.com

Mon, 01/31/2011 - 12:28 | 920574 spartan117

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

Mon, 01/31/2011 - 12:31 | 920586 digitlman

Do'h!

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

Mon, 01/31/2011 - 12:26 | 920560 traderjoe

Hamy!

Mon, 01/31/2011 - 12:32 | 920591 TWORIVER

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 | 920907 potatomafia

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 | 920564 plocequ1

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 | 920565 hedgeless_horseman

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 | 920573 jus_lite_reading

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 | 920577 Horatio Beanblower

Brent crude at $99.90.

Mon, 01/31/2011 - 12:48 | 920599 hedgeless_horseman

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

Mon, 01/31/2011 - 12:32 | 920589 Prof Gulliver

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 | 920597 Mr Lennon Hendrix

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 | 920600 Johnny Lawrence

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 | 920601 Oh regional Indian

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 | 920606 RobotTrader

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 | 920633 asdasmos

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 | 920768 Mr Lennon Hendrix

Meh, spot silver is up..

Mon, 01/31/2011 - 12:35 | 920607 John McCloy

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 | 920619 Prof Gulliver

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 | 920643 plocequ1