Today's Economic Data Highlights: Conversion To POMO Sapiens Continues
Just the weekly stuff today—claims at the beginning of the day, Fed balance sheet at the end…
8:30: Unemployment insurance claims….still range-bound. Nobody expects much of a change in either initial or continuing claims for regular programs, as hiring appears to have stalled. As more people exhaust the full 99 weeks’ worth of benefits, the total number of claimants has been trending down over time, though in any given week it can move 200k-300k in either direction.
For initial claims, median forecast (of 47): 455k, ranging from 430k to 464k; last 452k.
For continuing claims, median forecast (of 15): 4.43 million, ranging from 4.2mm to 4.47mm; last 4.441mm.
11:00: POMO... The Fed will monetize about $3.5 billion of bonds due 4/15/2012 – 3/31/2013. If the Submitted to Accepted ratio ends up being around 4 or below, expect the S&P to close up 80% (annualized)
16:30: Federal Reserve balance sheet….The size of the Fed’s balance sheet remains just under $2.3 trillion pending the widely expected announcement of more quantitative easing next week. However, the Treasury portfolio has crept up to by nearly $50bn since mid-August to $825bn as repayments of principal on agency debt and MBS is now being reinvested into US Treasuries.
From Goldman Sachs and Zero Hedge