POMO Ends, Stocks Sell Off, Frontrunning Hit Rate: 80%
Today's POMO is over: the Fed has monetized $2.5 billion in bonds, and 80% of the CUSIP we expected earlier to be monetized were validated. The Fed bought back 73% in notional in the 5 issues we suggested earlier were most likely to be repurchased. The expected CUSIPs are highlighted on the chart below. As expected, those who took our advice and leveraged a "few million times" made out just like a PIMCO bandit.
Most amusingly, is that stocks sell off the second POMO is over. Just as they surged the second POMO started earlier. This is frankly getting boring.