POMO

Tyler Durden's picture

ECB Reports Only €9.8 Billion In Bond Purchases In First Full Week Of Q€





Unlike the Fed, the ECB's Q€ program is far more opaque, far more ad-hoc, and far more improvised (and at the rate it is soaking up already negligible collateral as JPM explained yesterday, soon to be far more abbreviated). In fact, without a daily POMO preview (such as what the Fed used to provide) nobody has any idea what is going or what the ECB will be buying until a week after the fact. Today, for the first time, the ECB provided the bare minimum data on its "Public sector purchase program" i.e., how much debt it had purchased in the first week of the ECB's QE. The answer: only €9.8 billion.

 
Tyler Durden's picture

Foreign Central Banks Buy More Than Half Of 3 Year Treasury Auction, Highest Indirect Takedown Since March 2010





In summary: a very strong auction, one in which foreign central banks dominated, and certainly another confirmation that nobody is concerned about a surge in short-term rates any time soon.

 
Tyler Durden's picture

US Senator Demands A Federal Reserve Bailout Of Greece





And yet, perhaps in asking for a Federal Reserve bailout of Greece, everyone's favorite Vermont socialist does make some sense: after all if the Fed is bailing out European banks, and just European banks, on an ad hoc basis, and usually quite well hidden (see for example: "How The Fed's Latest QE Is Just Another European Bailout"), does it really matter if the Fed spends what amounts to one daily POMO amount to save some 11 million Greeks?

 
Tyler Durden's picture

And The Biggest Buyer Of Stocks In 2015 Will Be...





The stealth LBO of the S&P 500 will not only continue in 2015 but accelerate, with another 2% of the entire market cap converted into debt, thanks to a whopping $450 billion in net corporate inflows, $35 billion more than the $415 billion in corporate inflows in 2014.

 
Tyler Durden's picture

Japanese 10Y Yield Drops To Record Low; 2s Sell Subzero After BOJ Indirectly Buys Record Foreign Stocks





While the rest of the world was preparing to celebrate Christmas, China was busy easing its economy into growth, and its stock market into low earth orbit, by lowering non-bank deposit reserve rates to zero as reported previously, while Japan was enjoying the consequences of the BOJ monetizing 100% of all gross JGB issuance, when overnight the Japanese Ministry of Finance not only sold $22 billion in 2 Year paper at a negative yield of -0.003%: the first time ever a government note (not bill) has sold at a negative yield, but the Japanese 10 Year yield dropped to 0.31%, declining below the previously all time low hit on April 2013 when the BOJ first announced its unprecedented QE program.

 
Tyler Durden's picture

Hugh Hendry: "I Believe Central Bankers Are Terrified"





"My premise hasn’t really changed since I published my paper explaining why I had become more constructive towards risk assets this time last year. That is to say, the structural deficiency of global demand continues to radicalise the central banking community. I believe they are terrified: the system is so leveraged and vulnerable to potentially systemic price reversals that the monetary authorities find themselves beholden to long only investors and obliged to support asset prices. However, I clearly confused everyone with my choice of language. What I should have said is that investors are perhaps misconstruing rising equity prices as a traditional bull market spurred on by revenue and earnings growth, and becoming fearful of a reversal, when instead the persistent upwards drift in stock markets is more a reflection of the steady erosion of the soundness of the global monetary system and therefore the rise in stock prices is something that is likely to prevail for some time."

 
Tyler Durden's picture

Draghi Replays "Whatever It Takes" As ECB Buys Only EUR3bn In 6th Week Of Bond Purchases





After 6 weeks of the ECB's (3rd) Covered Bond Purchase Program, the cumulative buys amount to a mere EUR 10.485 billion. It appears they are limited (by collateral availability and market liquidity.. and dealers unwillingness to sell) to around EUR3 billion per week - around the same amount The Fed's QE3 would suck up in 1-2 days of POMO. At this rate, it's a long way to go to reach the $1 trillion goal. Is it any wonder that Mario Draghi once again used the 'w' word - uttering ECB will do "whatever it takes" (cough within its mandate).

 
Tyler Durden's picture

Market Turmoil: 10amET Sparks Sudden Reversal





The USD seemed to get a sudden flush at 10am, which sparked bond (10Y -3bps), stock (S&P +5pts), and gold buying (up over $15).... no catalyst as far as we can see other than UMich inflation expectations plunging...

 
Tyler Durden's picture

"Most Important Chart For Investors" Updated: Edwards Sees USDJPY 145 Next And "A Tidal Wave Of Deflation Westward"





What happens next? Here, straight from the horse's mouth that got the first part of the rapid Yen devaluation so right, is the answer. As Edwards updates with a note from this morning, "the yen is set to follow the US dollar DXY trade-weighted index by crashing through multi-decade resistance - around ¥120. It seems entirely plausible to me that once we break ¥120, we could see a very quick ¥25 move to ¥145, forcing commensurate devaluations across the whole Asian region and sending a tidal wave of deflation westwards."

 
Tyler Durden's picture

And This Is How You Spike Markets In The New Normal





Because when you have no POMO, and no QE on the horizon, you can always break a stock exchange and send the entire market... higher!?

 
Tyler Durden's picture

3 Things Worth Thinking About





The question that remains to be answered is whether the economy and the financial markets are strong enough to stand on their own this time? The last two times that QE has ended the economy slid towards negative growth and the markets suffered rather severe correction...

 
Tyler Durden's picture

Last 2 Year Auction Of QE3 Prices At Lowest Yield Since May, Lowest Bid-To-Cover Since September 2013





Altogether, an unremarkable auction in a week where the longer-maturities will be far more closely watched, especially after tomorrow once the FOMC announcement is in the history books.

 
Tyler Durden's picture

What Happens When You Run Out Of VIX To Short?





You just short some more...

 
Tyler Durden's picture

POMO Is Officially Dead... Until The Next QE





 
Phoenix Capital Research's picture

Stocks Are Primed For a MAJOR Correction





When QE ends today, the Fed balance sheet will stop expanding. Which means stocks will be standing on their own two legs for the first time in the last two years. Unfortunately, those two legs: economic growth and earnings are both weak.

 
 
Syndicate content
Do NOT follow this link or you will be banned from the site!