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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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Wed, 03/02/2011 - 11:41 | 1011254 FOC 1183
FOC 1183's picture

No

Wed, 03/02/2011 - 11:50 | 1011285 Commander Cody
Commander Cody's picture

Rhetorical eh?

Wed, 03/02/2011 - 11:50 | 1011286 Sudden Debt
Sudden Debt's picture

NOBODY FOLLOWS SPAIN AND PORTUGAL?

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

 

Wed, 03/02/2011 - 11:50 | 1011287 HelluvaEngineer
HelluvaEngineer's picture

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

Wed, 03/02/2011 - 11:56 | 1011311 Cdad
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.

Wed, 03/02/2011 - 12:00 | 1011332 MarketTruth
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??????

Wed, 03/02/2011 - 12:16 | 1011428 pendragon
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?

Wed, 03/02/2011 - 12:21 | 1011450 FOC 1183
FOC 1183's picture

yes

Wed, 03/02/2011 - 12:24 | 1011462 tahoebumsmith
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!!!

Wed, 03/02/2011 - 12:36 | 1011520 DB Cooper
DB Cooper's picture

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

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