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.