Frontrunning Today's POMO: Will The Fed Finally Do Its Fiduciary Duty?

Tyler Durden's picture

In advance of the completion of today's POMO we have just one question: will the Fed do its taxpayer fiduciary duty and monetize the cheapest bond (PM6 or the 2.125% of 12/31/2015), which trades 0.7 bps cheap to the sector, or, instead, bend over to Jamie Dimon et al again and instead buy the bond most profitable to flip by the Primary Dealers the just issued QJ2 (2.125% of 2/29/2016), which is actually 0.2 bps rich. Tune in at 11 am to find out.

The full list of eligible and cheapest to buy bonds courtesy of Morgan Stanley:

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Sudden Debt's picture


I give it 2 more days before the euro crumbles down against the dollar.


HelluvaEngineer's picture

No, the objective for today is a huge short squeeze.  And it's working.  Laugh it up while you can, guys.

Cdad's picture

Regardless of the size or the nature of today's PD ripoff of Joe Tax Payer, my guess today is that the proceeds do not buy S&P futures, but instead they flow natually into precious metal instruments.  I fully expect that yesterday's perfectly symmetrical trade into hard value, instead of that value dictated by the criminal syndicate known as Wall Street, shall continue.

MarketTruth's picture

The Fed doing its taxpayer fiduciary duty? What are you... ON DOPE??? It is all about feeding those members who own the Fed or have done the Fed's will, since when has it been about doing the right thing??????

pendragon's picture

has anyone noice the submitted to accepted ratio is rarely less than 5 these days when it used to be nearer 3?

tahoebumsmith's picture

most profitable to flip by the Primary Dealers ...This really is what it's all about isn't it? Monetize the National debt through the FED and the Primary dealers so they can continue to peck at the remaining flesh on the decaying American carcass. And when every pound of flesh has been pecked away they will declare another chicken little event and demand more money to save the world from collapse. This is the greatest heist in American history and it is being allowed by our Government. This is like having the members of Congress drive the get away car at a local bank robbery. If QE ever stops the big banks will go under because they now depend on their daily millions in bond flipping profits. It really makes me sick to think that they are awarding these banks with this pseudo bailout money for causing the crisis to begin with. And when America is completely bankrupt and the pomo ponzi can no longer sustain itself, we better finally see some of these pieces of shit behind bars!!!

DB Cooper's picture

Could we expect any of our so called elected Representatives, including Ron Paul, to ask about this? (Another rhetorical question)