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Second POMO Closes: Fed Frontrunning Success Rate: 100%
Today's second, and larger, POMO has closed. Brian Sack bought back $7.226 billion of notes due 5/31/2013-11/15/2014, at a perfectly as expected 4.1x Submitted to Accepted ratio, confirming that PDs have extra paper in the longer-dated end (the Submitted to Accepted ratio on the earlier auction was ~6x). And for those who followed our recommendation from this weekend to buy the highlighted CUSIPs have experienced a 100% frontrunning success rate, which couple with this morning's 93%, speaks for itself just how "unpredictable" the Fed's monetization actions are. And, even more hilarious, precisely as we expected, CUSIP PU8 was one of the most monetized bond issues. As a reminder this is the bond that was auctioned off on November 8, or three weeks ago. Today the PDs put back $1.7 billion of their total PU8 exposure back to the Fed. And so the Treasury -> PD -> Fed shell game continues without interruption, but in the meantime, the PDs get the benefit of picking up the spread, which as we highlighted previously amounts to about a $50 billion gift for the duration of QE2.
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Very pretty color. Orange this time. I like blue
I thought to myself, if I could get my hands on a billion dollars short term loan and buy something with and then sell it a few ticks later and pocket a few million I could retire. And if I lost, I would be bailed out. What a wonderful life all around.
if you lost.....you're a PD, so Bennie would come over to your house, make you some soup and explain how he'll take care of it, by ripping off a few million more from the peasantry's assets to make you whole.
we do not let royalty, the chosen people, suffer........
if you lost.....you're a PD, so Bennie would come over to your house, make you some soup and explain how he'll take care of it, by ripping off a few million more from the peasantry's assets to make you whole.
we do not let royalty, the chosen people, suffer........
the PDs get the benefit of picking up the spread
it's the vig, man, the vig.
BLS unemployment, Bachelors degree or higher: 4.7%.
Message? Continue looting.
Did all that free PD money hit the markets at 2:30pm??
I am never sure which tire pump Bennie is using...
No, it's a raging swarm of mom and pop investors mouse clicking their meager fortunes away.
After the FED they should put Binny B. in charge of running AMTRAC. They'd always be on time, especially the 2:30 ones.
Market goes vertical directly at 2:30....LMFAO.
REITs completely reverse in a Saturn V rocket like jacking.
I think I've seen this bullshit before.
Santelli just told erin that one of the reasons of the market turnaround was the closing of the second pomo, hmm wonder if he is reading zero hedge on his breaks.