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POMO Closes: Sack Monetizes $8.3 Billion In Bonds
Today's POMO is now over. The FRBNY has bought back $8.3 in 2018-2020 notes, wth a submitted to accepted ratio of 4.1x, right on the median. The PC8 CUSIP was untouched as even the Fed lifting some arbitrary offer (nobody knows at what price these buybacks occur) would be insufficient to make up for the loss incurred by the PDs who bought this issue two weeks ago and the subsequent drop in the price. Obviously, PDs are hoping that the longer-end of the curve will pick up for a better exit point to the Fed. On the other hand keep an eye out on the next 2018-2020 auction (after December 10) - if the 10 Year does not pick up in price over the next 3 weeks and if PDs sell the PC8 CUSIP into weakness, that will be a very critical inflection point.
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what does POMO stand for ?
Permanent Overt Manipulation Operations, I think.
Pervert Operating Money Orifice.
In case you are looking for the real answer, as I saw you ask the same question in another thread: Permanent Open Market Operation.
Is that all? Jesus, I thought you had a story here. This is just the entire 'bailout' of Chrysler in a few hours. But, hey, let's beat the shit out of Chrysler and GM and gloss over the mega-fraud!
Under pressure? http://www.youtube.com/watch?v=Z3qVl8Gb2J4
Not really. The PDs are required to bid. The Open Market in POMO is a reference to the Fed BUYING in the open market. The Treasury SELLING debt to the chi.coms, nipps, PDs, and "households" is far from an open market; you see the PDs have that shit wired tight.
permanent open market operations.
well, despite the juice, Brian can't get the HFT loveboat moving.....
GE, BAC, ....and gasp, GM down.
"You ain't seen nothin' yet..."
And theyre off.. And its Horse 912828HR4 ahead by 2 lengths trailing 912828NT3. Horse 912820EEF is trailing 4 Lengths around the bend... And Its 912828HR4 winning by a Nose
Someone help me: If SPX cracks 1190, I might just have the brief psychotic illusion of a free market and short the SPY. Someone get me my POMO pill.
Snap out of it for christ sakes before you hurt yourself.
Go back to sleep. No free market here. The fed has it all under control. sleeeppp.....sleeeeppp... sleeep little sheep.
Watch out with that kind of talk. Someone might stick you in a sane asylum.
in a fight of FED with its unlimited amount of money against market bears with limited (and more valued) money, is there really any question who is going to win?
i am not obviously saying anything about PM which are going to be supported by FED printing Dollars.
Right, they'll 'win' when the DOW is 20,000 and the USD is -0-. Enjoy.
i agree that it is not going to be actually any different for people who don't trade stocks, but for few of those that still do, it is a valid question.
They may win the race in market elevation. But the dollar will lose. Bullets, band aids, and beans. That is where we win the race.
in a way, dollar losing its value is at least half good. It would mean USA cuts down its existing debt, deficit, .and creates some jobs (in USA) . Maybe even a few less wars, as it would be too expensive if paid in something not so easily produced.
Yeah and raising the price of goods and services on the backs of the poor. That is a great idea for paying down our debt. How about this.... we stop spending and actually pay down some debt get rid of some overpriced do nothing corrupt government bureaucrats, but then that may be a little too close to home for you.
I got nothing to do with government or bureaucracy, but i am as corrupt as most of us. you got half of that right.
But which goods and services are we talking about? Chinese, German or maybe Japanese? USA can produce everything it needs, and has plenty of food.
If you think that through a lower dollar we will produce more goods and services you are nuttier than the government god that you worship. We have no industry because we regulate them right out of existence. As for food inflation I know that you buy into old uncle sam's department of truth numbers. But the facts are that food prices and the price of other goods and services are exploding.
I dont see why a weaker dollar would not mean more goods and services produced in USA and less imported. It is tried and proven method by China, Japan and Germany.
One word......Zimbabwe. Make it three words....Zimbabwe, Weimar republic.
Zimbabwe is not absolutely not comparable to USA. and Weimar republics did not have strongest army in the world and nuclear weapons.
Same as Japan isnt Zimbabwe, China isnt Zimbabwe etc....
you could try to provide some reasons to your arguments, instead of making silly accusations and comparisons.
You contradict yourself. You suggest a weak dollar will mean less war and at the same time you brag about our military might. What do you think that foreign government responses will be when we repay them with worth less dollars? It is true we are more versatile than Zimbabwe, but the world will tire of our monetary folly and they eventually will sell it off.
i said it may mean less war, due to having less oil. It is not 100% certain by any means. Personally cant see any foreign government doing much except that they may demand gold or silver or something else similar in return for their products and services.
I think it is too late to save economy by cutting the spending, that would have worked 10 years ago, but the debt is too high now, and has to be written off, one way or another.
What will save the economy is deregulation t the point where a small business can be profitable. The too big to fail have fleets of accountants and attorneys to handle any regulations. The bigs must be allowed to fail and the economy needs to reset. The government need to downsize dramatically as does the military. Then we can grow and prosper again. Oh yeah and the fed needs to be dissolved.
I actually think that could have helped quite a lot if it was done earlier. But i cant see all those accountants, attorneys, public sector workers, military serviceman finding any work in a Depression that would follow if its done now.
In any case i am glad to hear different opinion.
That's what I mean when I say the economy needs a reset. We have too many lawyers,accountants, and financial services people. Let the economy reset like it needs too and our industrial base will come back because people will actually want to work and be less concerned about nimby ( not in my back yard).
Reset is what they mean to do as well, by lowering value of outstanding debt. It may be possible to do resetting by letting TBTF fail, and Government and FED following them quickly, and preferable. However this is not what they are planning to do, and for that reason i would not short the equity markets ( unless i had inside information of next flash crash ).
+10
Food, housing, state & local taxes, all UP....regular gasoline around here $3.35>/gal. Fed taxes, heating oil about to go UP! But hey....let the Gubment borrow more, put more people in Fed jobs to figure ways of taxing us even more..........anything wrong with this picture???
Bwannie Fwank awpawed that anywone would find fwalt with the Fwed........
Wat a douche........
It's getting to a point that the POMO's make little difference to market action today. I'm pretty bearish at the moment. :(
........uh, just do not short AMZN....looks like the primary beneficiary of today's POMO....
I would really have to judge somebody to be absolutely insane if they told me they sold PMs to increase short positions in Q2 2010 or Q1 2011. Lucky nobody here has that brand of madness.
POMO / Favre = Thrill is Gone. Nuff said.
Can the "Black Friday" trade be any more obvious??
Zales on the move again.
I thought that company was on the brink of bankruptcy.
"Demand is steady and strong for T-bills. This week's coverage for the 3- and 6-month auctions was both well over four." (Bloomberg, 11:30am). And these are not listed for upcoming POMOs. At 0.14% rate on the 3-month, I take this as bearish. But market thinks otherwise.
$3 for zales?
Chart MNTX grasshoppar, it's a man's stock
Well now that its .19 cents higher I'm sure all is well.
Now the damn Kiwis havr gone rogue!
SPX
Once again, heckuva job.
http://99ercharts.blogspot.com/2010/11/spx_9496.html
http://www.zerohedge.com/forum/99er-charts
POMO no go. PMs pull hind teat, DX up. Got inflation?
Keep pushin' that rope. LOL
Yeah, deflation on sleeping bags...there is a sale at Wiggy's! Please go see if there are any good deals on seconds? Ask them if they are ever going to offer their poncho liner in Multicam.
ES-ZB
http://99ercharts.blogspot.com/2010/11/es-zb_22.html
http://www.zerohedge.com/forum/99er-charts
you know, step back a sec....ben's got to be shittin' bricks.....the market is going down while he's pomo'ing his heart out.....
no wealth effect here, gotta be somewhere, where" where could it be....oh, damn it, some of the peasantry are moving into the HUI...jesus......
Apart from today's FED QE2 POMO of US $8.257billion of 8 year to 10 year coupons,
there is also a US $35billion FED Debt Auction of 2 year Notes.
The Fed buys a little to keep yields down, then sells more of US Debt,
at lower yields,to keep the Interest payments in Check.
Last US financial year's Interest on US national Debt (13.6 trillion)
was US 414 billion Interest for the year.( at average 3% Interest Rate).
If the Interest Rate Yield should move any higher, the US will be Irish.
And this is the real reason why the FED keeps buying back their own US Debt.
It is to keep those Interest payments in check...as far as possible,
or go down the Irish way to Austerity...
SPX
Heckuva job.
http://99ercharts.blogspot.com/2010/11/spx_7350.html
http://www.zerohedge.com/forum/99er-charts