Tiny $1.3 Billion POMO Done, Enough To Push Market Into Green Territory
It has been a while since Bernanke took matters into his own hands, which is why at 11am the Fed completed a $1.3 billion buyback of 2021 thru 2024 maturities. Ironically that's exactly the time when the market took a leisurely stroll into green territory, and hopefully should make today's auction of $20 billion in 10 Year Notes just a tad more palatable.
Alas, to the Hopium addicted market, the action was barely enough to cause a brief "green" sputter, as it now seems again back on the verge of testing negative territory.
And with $1.3 billion more down, there is just $5.6 billion left - that's barely enough to cause a 5 point move in SPOOs.