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POMO Begins

Tyler Durden's picture





 

Today's POMO, focusing on 2013-2014 bonds has just started. As we proposed yesterday (in what led to quite a lively and interesting debate), now that even Goldman is advising clients to frontrun POMO, this may have been the top tick to the POMO frontrunning operation. A red close may just confirm that. But far more important than equities, we highlighted, courtesy of MS, just which CUSIPs will most likely be monetized (and thus submitted) the most by the Fed today. If indeed these are confirmed to be the bonds put to the Fed the most, it will merely erode one more layer of credibility the Fed has of an impartial and non-transparent organization.

As we suggested yesterday:

Saving the best for last: tomorrow's POMO will focus on bonds between 2013-2014. Here are the bonds most likely to be bought:

  • 1.750% of 4/15/2013
  • 1.375% of 5/15/2013
  • 1.125% of 6/15/2013
  • 0.5% of 10/15/2013
  • 0.75% of 09/15/2013

Buy these today for a flip to the Fed tomorrow. Don't forget to apply a few million turns of leverage.

We shall see if these are indeed the most frontrunnable issues when POMO is done in 30 minutes. In the meantime, here is the announcement, with the permitted inclusions below, and the above five bonds highlighted in the list:

 

 


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Fri, 10/22/2010 - 10:35 | Link to Comment unwashedmass
unwashedmass's picture

 

sitting quietly. will short after eleven. thanks, zero.

Fri, 10/22/2010 - 10:36 | Link to Comment quintago
quintago's picture

POMO this, POMO that. The reality is that many of these operations, particularly currency operations, are run out of Langley. They have been moving currency and the such around since the eighties.

Fri, 10/22/2010 - 10:39 | Link to Comment the not so migh...
the not so mighty maximiza's picture

Langley, the Air Force base? is that where they load the pallets of money?

Fri, 10/22/2010 - 10:43 | Link to Comment HelluvaEngineer
HelluvaEngineer's picture

whiskey tango foxtrot, over

Fri, 10/22/2010 - 10:56 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Langley, the Air Force base? is that where they load the pallets of money?

LOL

I've often wondered exactly where all those pallets of hundred dollar bills (many many millions of $'s) that went to Iraq (and Afghanistan) came from and went to? How many contractors and military/CIA/NSA officers "retired" on that little jackpot?

Fri, 10/22/2010 - 10:37 | Link to Comment eigenvalue
eigenvalue's picture

Yesterday, the Fed withdrew some liquidity from the market and the size of the POMO the day before was not very large. Guess today's POMO will be small and the market will close in the red. 

But this may not be a good sign for the PM market as gold and silver seem to move in tandem with stocks recently. 

Fri, 10/22/2010 - 10:42 | Link to Comment Phat Stax
Phat Stax's picture

The dollar has held up today and the rest of the POMO dates have been removed from the schedule on the website.  Anyone know anything?

Fri, 10/22/2010 - 10:49 | Link to Comment Ragnarok
Fri, 10/22/2010 - 10:56 | Link to Comment Phat Stax
Phat Stax's picture

hmmm... could be mistaken.

Fri, 10/22/2010 - 10:47 | Link to Comment LongSoupLine
LongSoupLine's picture

Tuesday's POMO was TIPS, which tends to be mch smaller.  I foresee a 4-6B run today.  Git yer popcorn here!

Fri, 10/22/2010 - 11:43 | Link to Comment tmosley
tmosley's picture

Good news for PM accumulators, though.  I might actually get to buy some more when I get paid.

Fri, 10/22/2010 - 10:39 | Link to Comment NOTW777
NOTW777's picture

coincides with cnbcs full blown campaign mode for dems;

running campaign ads for harry the reid

Fri, 10/22/2010 - 10:47 | Link to Comment Ragnarok
Ragnarok's picture

Spent a good 10 minutes this morning calling Angle an extremist and ripping her apart.  Partisan Hacks.

Fri, 10/22/2010 - 10:49 | Link to Comment NOTW777
NOTW777's picture

LOL now running a dramatic piece on "students" giving to libs;  top guy is soros son - LOL yeah its his $ - he worked at burger king and saved up $73k for yobama.

Fri, 10/22/2010 - 11:17 | Link to Comment John McCloy
John McCloy's picture

Yeah I was going to mention that this morning but was running around. Makes me want to vomit to see the propaganda. The propaganda was on full steam ahead this morning on MSNBC Morning Joe.

 I should also note that the supposedly "impartial" Huffington Post which has been attempting to transform itself into THEE online newspaper is rapidly becoming the most disgraceful excuse for Internet propaganda journalism I have ever seen. They are controlled "opposition" and are blatantly Prop dem/liberal and frequently running anti-right tea party stories. Here are some of today's top headlines:

  • George Bush says, "Privatizing Social Security was my biggest mistake"
  • Food Stamps usage soars: (Later on a few paragraphs down they manage to insert "Republicans bash food stamps as wasteful entitlement"
  • Clarence Thomas Ex Reveals Details: They slip in how he is a porn addict. Strange and probably has nothing to do with his wife being a tea party member and him being a conservative justice
  • President Obama's message to Gays: I Love you guys and got your back.
  • Christmas Ruined for 1.2 Million Americans if Jobless benefits not extended: The best part of this is the photo of a baby in a santa hat crying. They article bashes Republicans for not handing out free cash unless cuts are made.More pity parties for all.
  • Palin & Demint Aiming for NPR after Williams Firing: Seemingly harmless until you read the article. They accuse the publicity hungry Repubs of "Claiwing over fresh meat" to attack NPR funding. They also state, "It is hard to have sympathy for Williams who has embarassed himself" But that has not stopped Republicans.
  • President Obama Hoping to energize four states: "And young voters" picture of the "popular president holding up a Wisconsin shirt with gleeful sudents
  • The Meeting of the Titans as Jobs & President Obama chat: Discusses their recent meeting. 
  • Relgious message Fuel negative views on Gays: Poll a few paragraphs down shows how Democrats at 40% believe religious messages are contributing to suicide rates while only 17% Republicans believe so.
  • Early voters SUPRISINGLY turnout for Democrats
  • Sympathy for Juan Williams piece: Neutral but opposing NPRs attempt to surpress the 1st amendment
  • Conservative Donors Let Odonnell Sink: More smear agains the Tea Party claiming the "Repubs" are giving her less money than her grassroots out of state funding. So I supposed this is a bad thing that establishment controlled opposition on the left and right are still in a race with someone who recieves ample money from individuals from and does not have access to mainstream propaganda hit pieces.
  • Tea Party Fakeout GOP Gift of 90 Billion to Wall Street": Nothing to insert here.
  • Worst Beers in the World: Um ok. Thanks for that info.

Meanwhile Soros funds the HuFFPo investigative "journalism"

Just imagine the quality of politicians and candidates we would have if these globalists, thieves, spin doctors, faux journalists and captured media did not wage war on the middle class psyche constantly in an effort to direct sentiment. All this and Americans still know that something is not right in the land of America. They just need to unplug the propaganda or be presented with an unbiased option of media. Thanks ZH

Fri, 10/22/2010 - 10:41 | Link to Comment Fidel Sarcastro
Fidel Sarcastro's picture

It's a VWAP mean reversion morning.

"Dude, where's my POMO?"

Fri, 10/22/2010 - 10:44 | Link to Comment shc
shc's picture

looking like a lousy POMO. 

Fri, 10/22/2010 - 10:46 | Link to Comment Sausagemaker
Sausagemaker's picture

Strap on your Tinfoil Hats folks!

Why is Obama putting a Fannie Mae/Goldman Sachs lobbyist/consultant as NSA?

http://www.washingtonexaminer.com/opinio....

Fri, 10/22/2010 - 10:49 | Link to Comment Careless Whisper
Careless Whisper's picture

i think you mean why is Goldman putting him there.

 

Fri, 10/22/2010 - 10:53 | Link to Comment the not so migh...
the not so mighty maximiza's picture

Obama makes Nixon look good.

 

Fri, 10/22/2010 - 10:51 | Link to Comment Sausagemaker
Sausagemaker's picture

Touche'

Fri, 10/22/2010 - 10:51 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

If indeed these are confirmed to be the bonds put to the Fed the most, it will merely erode one more layer of credibility the Fed has of an impartial and non-transparent organization.

The Fed has no credibility remaining even to the Kool-Aid drinkers. The entire shooting match has begun to devolve into pure unadulterated greed and back stabbing. As do all great parties when the punch bowl is not only left out longer than it should, but has been filled to the brim with grain alcohol and over sweetened punch.

Fri, 10/22/2010 - 10:58 | Link to Comment RobotTrader
RobotTrader's picture

Looks like the first "tranche" of POMO today went to Interactive Brokers...

LOL....

 

Fri, 10/22/2010 - 11:02 | Link to Comment Careless Whisper
Careless Whisper's picture

don't forget about AMZN and NFLX

Fri, 10/22/2010 - 11:01 | Link to Comment DollarDive
DollarDive's picture

We need a "pomo-indicator"  showing oversold and overbot pomo

Fri, 10/22/2010 - 11:02 | Link to Comment ncbpc
ncbpc's picture

I need a stimulus package too!

And not of the in-kind type: 

Lol ... have a nice weekend!

Fri, 10/22/2010 - 11:03 | Link to Comment MGA_1
MGA_1's picture

For some reason I find this whole thing a bit humorous.  Most likely the fed is secretly condoning all of this (keeps the market up).  ZH is watching this and the fed is watching ZH watching this so now the fed will be thinking of other strategies.  Quite the shell game.

Fri, 10/22/2010 - 11:08 | Link to Comment unwashedmass
unwashedmass's picture

 

i don't think they are watching us....i think the contempt for investors/traders other than the very biggest institutions is so high...that they couldn't be bothered.

no, if anything they are monitoring CNBC and the other major networks to see how the propaganda campaign on "stocks are booming/buying opportunity/come back little schmuck to hold the bag" is going

Fri, 10/22/2010 - 11:18 | Link to Comment MGA_1
MGA_1's picture

Probably true, buuttt, this site is gaining attention...

Fri, 10/22/2010 - 11:06 | Link to Comment Dr. Engali
Dr. Engali's picture

Pomo arigoto Mr. Bernanke. Pomo Pomo, Thank you very much Mr. Bernanke Pomo Pomo. Secret secret I've got a secret.

Fri, 10/22/2010 - 11:16 | Link to Comment Tsunami Effect
Tsunami Effect's picture

Tyler nailed it Operation 1 - RESULTS Operation Date: 10/22/2010

Operation Type: Outright Coupon Purchase

Release Time: 10:15 AM Close Time: 11:00 AM Settlement Date: 10/25/2010

Maturity/Call Date Range: 04/15/2013 - 09/30/2014

Total Par Amt Accepted (mlns) : $2,490

Total Par Amt Submitted (mlns) : $24,808

Inclusions: CUSIP ID Security Description Par Amt Accepted ($)

912828MX5 T 01.750 04/15/13 1,270,000,000

912828HY9 T 03.125 04/30/13 0

912828NC0 T 01.375 05/15/13 950,000,000

912828BA7 T 03.625 05/15/13 0

912828JB7 T 03.500 05/31/13 0

912828NH9 T 01.125 06/15/13 270,000,000

Fri, 10/22/2010 - 11:10 | Link to Comment keepmydollar
keepmydollar's picture

Not bad of the 3 issues purchased all are in their list.  No frontrunning here.

Fri, 10/22/2010 - 11:09 | Link to Comment ThaiKev
ThaiKev's picture

Only 2.5 B

Fri, 10/22/2010 - 11:12 | Link to Comment dbradsha
dbradsha's picture

VXX must be at at all time low. Complacement or what ?

Fri, 10/22/2010 - 11:19 | Link to Comment Anonymouse
Anonymouse's picture

Oh sure, I finally buy some SPY in front of POMO and for once nothing happens.  Probably have to move back out as I don't want to be long with G-20 coming up

Fri, 10/22/2010 - 12:08 | Link to Comment Zero Debt
Zero Debt's picture

The US Fed is more keen to prop up real estate prices than stocks.

Fri, 11/05/2010 - 04:09 | Link to Comment rocky89
rocky89's picture

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Fri, 11/05/2010 - 04:09 | Link to Comment rocky89
rocky89's picture

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meichou's picture

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