Today's POMO Starts
Another day, another chance for Brian Sack to give $3-5 billion in free, free linen to the Primary Dealers to buy themselves some Apple. Today's POMO has started, and the bonds to be monetized include a variety of 2016-2020 vintages. Once again, these are the bonds which will likely be purchased the most in the upcoming $1-$1.5 trillion QE2, so PDs may hold off selling them back to Brian until they get much better prices. Although who the hell knows or cares anymore. After all, if things get ugly the UK will simply come in and buy a quadrillion worth of Bonds using some more of that Fed free, free linen.