Last POMO Of The Week Ends Without Disruptions, PDs Monetize Just Issued 5 Year Bond
While the last time there was a major market swing minutes before POMO completion force the Fed to delay the end of that particular POMO after Primary Dealers had to make sure they are going to be guaranteed their hundreds of millions in taxpayer funded capital gains, this time around there was no such issue. Today's monetization of 5 Year Notes closed with $6.580 billion of debt bought by Brian Sack in this week's last POMO (none tomorrow). And in what should not be a surprising development to anyone, the one issue which represented over half of the total operation was the just issued 5 Year QA1 which was placed literally a week ago (highlighted on the table). And so the grand scam continues: the Fed pretends not to be monetizing, the Primary Dealers pretend not to be making millions in preferential Bid terms, and taxpayers pretend to care.