Weak POMO Closes: Only $660 Million In Monetizations
As expected, today's TIPS POMO was very week, with just $660 million in monetizations. Yet the market certainly was expecting some ridiculously number as seen by the simply stupid action in FX. This is Pomo 3 out of 9. $11 billion down, $21 billion left, or just $3.5 billion per POMO left until November 9. Of course, by then we will know just how big the weekly POMO contribution from QE2 will be. Look for one last attempt to pump the market today via the killing of the dollar and then a fade.