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Last POMO Purchases $1.9 Billion Of 2009 5 Year Note Issuances
The last POMO is now history, with $1.936 billion prudently injected by the Fed to liquefy the market and make sure that the big GDP surprise beat (thank you Goldman) cements the President's efforts to pronounce on national TV that the recession is over later today (whether consumers are expected to max out their credit cards in order to be eligible to vote in the next presidential elections is as of yet unknown). Virtually the entire amount of money released by the Fed was used to purchase 2009 auctioned 5 Year Treasurys:
- KN9 - $546 million: 5 Year Bond issued April 28;
- KY5 - $381 million: 5 Year Bond issued June 24;
- LC2 - $362 million: 5 Year Bond issued July 29
- LQ1 - $330 million: 5 Year Bond issued September 23;
- LK4 - $150 million: 5 Year Bond issued August 26;
The 50%+ purchaser of Treasuries in Q2 is now out of the picture, and even as primary dealers are all happy for the time being, the question of whether or not China, Japan and the UK will step up and fill the void left by the Fed's departure is a very critical one.

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How about the idea that big money cannons like GS can legally just machine gun the market lower vi selling or short selling or both, and reap the profits via puts and then turn around and buy the damn junk up again and just paint the damn tape any way they want, and day they want?
... you sound jealous.
I have to say the circle jerk is going to get severly convoluted if the Agency POMO schedule gets pushed around for a failed auction. Jim Sinclair has been harping on about November being the timeframe the Chinese are supposedly going to back down on Treasury purchasing. The combination of two events like these make for a nasty combo for equities.
No matter, I just saved a bunch of money on my car insurance by switching to....
LOL! Brilliant.
"the President's efforts to pronounce on national TV that the recession is over later today"
-Mission Accomplished!!
http://www.youtube.com/watch?v=CFijzDyJnVE
Oh man it just makes my heart flutter, we've completed the program to rip off the taxpayers and without any sort of noticeable protest... be still.
The era of big government is back!
Me thinks Crony Capitalism instead.
The era of big government has existed for the last 30 years consisting of both Republican and Democrats.
There are always the Fed-UK-Cayman Islands back alley monetizations. The ten year will not exceed 4% in 2010 for any stretch of time. Bernanke is a liar and a thief in a tweed coat.
Bingo! The Fed is first and foremost a criminal operation.
But...but...but criminals don't wear three piece suits, run the world's economy and belong to country clubs, do they?
You must be thinking about some silly movie you watched on Netflix because in real life all the scum bags are either currently locked up or awaiting trial and wearing ankle tracking devices.
Please GG, say it ain't so.
Well said GG.
Doesn't all that international drug money count as liquidity? Didn't the head of the IMF say a little while back that drug money saved Wall Street?
It always amazes me how otherwise sane and reasonable people will flame me when I talk about drug money and Wall Street. They try to tell me how all that drug money somehow stays seperated from Wall Street by some Chinese opium firewall.
One question. How and where does all that drug money, estimated at around $300-$500 Billion per year, enter the world's economic system? That's a reasonable question unless you don't believe there's any drug money in the world sloshing around looking for ways in.
What's that you say, it doesn't enter the system? Man, in that case I'm going treasure hunting becomes someone's back yard has a pot of Gold sitting 6 feet under. Or is that Jimmy Hoffa? I always get the two confused.
Seeing as there's an estimate on the size of drug money, there must be an estimate on the size of the overall black market in the US as well.
Shhhhhh. We don't talk about these things in polite company lest we scare the woman folk. Best keep it under wraps and out of mind.
It only takes two (that means you and I) to make a conspiracy. And if Tyler posts about us, then that makes it a conspiracy theory.
I worked at JPM in the 80's. I remember a phone call from Columbia were they were the wife of a certain client was very happy to buy $5M of short term Treasurys. A broker would visit the husband a few times a year. If the broker didn't report back every few hours or so, I understood there were protocols...
If the President is going to announce today that the recession is over, then Israel will probably bomb Iran tomorrow.
MSM has not been mentioning Israel/Iran for a while now. Something should happen soon. Got gold and silver?
Can you trust any numbers coming out of white house?
AP IMPACT: Stimulus jobs overstated by thousands:
http://www.google.com/hostednews/ap/article/ALeqM5jMNoef6xDenBbHWO0Im6rI...
And, then, as you would expect from Chicago mob:
http://www.npr.org/blogs/thetwo-way/2009/10/ap_says_stimulus_jobs_have_b...
An Associated Press report that "President Barack Obama's economic recovery plan overstates by thousands the number of jobs created or saved through the stimulus program" has generated a sharp response from the White House.
Talks about how embedded interest rate swaps creates endless demand for treasuries...not sure I completely understand but interesting:
Jay Taylor interviewed GATA consultant Rob Kirby of Kirby Analytics in Toronto about the use of massive amounts of derivatives to manipulate the bond and gold markets via New York banks working as agents of the Federal Reserve. The interview lasts about 20 minutes and you can listen to it here:
http://www.miningstocks.com/radio/radio_archives/taylor20091027-2.mp3
not sure if anyone has the wherewithall to do this, but, if u go to the below link, maybe you can create a bar chart of the fed purchases by date in agency and treasuries, overlayed by a line graph of the SPX ascent (/DXY rapage).
http://www.ny.frb.org/markets/pomo/display/index.cfm
enter the date ranges.
OR, simply sum the number of SPX points that have been gained on the days the purchases of treas and agencies. this will put this debate in the media to rest with the empirical evidence. i havent seen this anywhere as yet (except for my propensity to tear my hair out as im watching it on my screens live ;)
ZH
I would very much like to see a summation piece on the POMO T program, and effects on interest rates, economy, dollar, and markets going forward. You have done an excellent job so far on the POMO buys and tracking, now is the time for your crystal ball forecast.
The critical question is; who will buy our debt, why and at what return? The shift towards shorter term buys, and the FEDs ever-loose policy, suggests that there is no viable long term economic strategy from either the White House or the FED.
Now is the time to play "what if" with the Ben B play book. The unpredictability must be very distressing to the Bond market and traders.
The pragmatic types are stead fast in their assessment, the FED will need to intervene. But, you cannot pay for debt with more debt and expect many more happy people to play in your sand box.
So I ask you ZH; What is Ben's big plan?
"Cements the President's efforts to pronounce on national TV that the recession is over later today"
I remember when Bush went on TV proclaiming an end to the Iraq War.
Humm, that was how many years ago. This DEPRESSION we are in is just getting started