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POMO Closes: $3.6 Billion In Debt Monetized, Morgan Stanley Predictive Prowess Still Spotless
Today's POMO has closed, with the Fed monetizing $3.609 billion in debt, far more than previously expected, and much more than last auction's $2.5 billion (is Liberty 33 sweating in its reliquification attempts courtesy of today's nightmarish economic date). The hit rate was also worse than the previous one, coming in at 16.5%, with 12.2% previously (another way of saying this is that the submitted/accepted ratio was 6.07). And yet again, Morgan Stanley was spotless, with its 9 bond predictions all eligible for purchases, and in fact seeing 6 of the 9 proposed issues purchased by the Fed. In a basket which had 27 eligible CUSIPs, this is quite an impressive result.
Below are the details of the bonds suggested by MS would be bought back:
- 3.25% of 3/31/2017 - eligible, $755 million monetized
- 3.125% of 1/31/2017 - eligible, $294 million monetized
- 3.25% of 12/31/2016 - eligible, $315 million monetized
- 2.75% of 11/30/2016 - eligible, $395 million monetized
- 3.125% of 4/30/2017 - eligible, $162 million monetized
- 2.75% of 5/31/2017 - eligible, $158 million monetized
- 3.125% of 10/31/2016 - eligible
- 3.0% of 9/30/2016 - eligible
- 2.375% of 7/31/2017 - eligible
Oddly enough, the biggest repurchased issue, the 3.0% of 2/28/2017 was not on MS' list. Nonetheless, this is truly a spectacular result for all who front-ran the fed based on Morgan Stanley's recommendation.
Those who are curious which issues will most likely be bought back at the next POMO day, on August 24, can see the 10 most eligible issues here.
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1080 is the PPT's mother's honor. The intern was sent to Sherwinn-Williams to buy all of the 5 gallon buckets of green interior latex--the kind that sticks to tape. Hope he didn't spend the tax payer's money on a magic bean.
Can you explain in layman's terms why the POMO is important to monitor?
Because that adds or removes money from the "system" if you dare call it that. A.K.A. the grubby hands of bankers.
Translation for the simple minded .. Go long AOL and other over valued stocks. Uncle Bens got you covered.
Close out all shorts at EOD as tomorrow there is not a single piece of "reality data"(using the term loosely) so it will be pumped come hell or high water.
Spoken like a true Prodigy
And no sooner is "it" done but the market plunges (further) into the abyss.
Got a haircut today waiting for the post POMO bounce. Will never try picking pennies in front of a train....
Likewise. I have a bunch of short positions and figured some TNA would hedge them come the bounce. Stopped out instead. (NOW watch the bounce come).
So you guys thought you could beat HAL 2000 huh?
HAL 2000? Hell this is Skynet, bitchez!
Morgan Stanley can pick my Keno numbers anytime.
Sell side research ROCKS!
The 1 minute charts are so much fun.
http://www.freestockcharts.com?emailChartID=87a41452-7714-45a8-9bbc-f4bc912faa4c
whoops FED -backfire
did the fed scare away all shorts today..(?) No forced buyers to squeeze means this could get rollin' BIG TIME...........
I always wondered how long their surefire 'we'll squeeze the shorts into oblivion daily' trick would last. Shorts just arent that stupid. Now frontrunning the FED....uh oh.
The next leg down ...
http://stockmarket618.wordpress.com
Darn, and we were sooo close to breaking 1070 :(
How did the boys from the last pomo pump fare?
How do you get monetization when the Fed is using the interest money from the MBS it holds? If you think Fed is printing money to buy treasuries, kindly provide some justification for this claim.
The [Privately Held] Fed created credit (for free) to purchase MBS in the original 'emergency' QE. Said all along it would lower its balance sheet in an exit strategy to be determined later - at least in part by running off the MBS. That was the 'plan'.
Now it is using the principal payments from the MBS to 'maintain' its 'emergency' balance sheet. So we are still in an emergency 18 months later?
The original MBS purchases were done with free credit printed. Fruit of the poisonous tree...
How could you claim otherwise?
Hey what happened to the sure-fire POMO pump? Guess this time they decided to chop the bulls horn off in the sure-thing double cross? Dang this is better than The Sting!
There are certainly a lot of details like that to take into consideration.I read and understand the entire article and I really enjoyed it to be honest.
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