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Special Repo And Visualizing The Fed's All-Too-Visible Hand
Wondering why the current 10Y Treasury note is now trading special in repo? Look no further than the following visualizations. The fact that overnight repo on that bond is now at its limit (since 3% is the penalty rate for failure to deliver) strongly suggests the collateral shortage we have been warning of is becoming increasingly severe. Of the nearby bonds, The Fed already owns the maximum 70% of the 8 3/4% of 8/15/20, the 7 7/8% of 2/15/21, the 8 1/8% of 5/15/21, the 8 1/8% of 8/15/21, and the 8% of 11/15/21...
Perhaps this is why so many of the Fed heads are starting to try and jawbone back the exuberance...
Exponentially rising lines on charts, endless '0's in a spreadsheet, and asset-class valuations that beggar belief dominate one's mind when the Fed is considered. In two wonderfully simple brief clips, Stone McCarthy visualizes the growth in Fed holdings by security type and the average maturity of the central bank's balance sheet. The calm before the storm - before the pending chaos - is evident when one considers just how this will all get unwound (let alone tapered).
The evolution of Fed Holdings by Security Type...
The evolution of the Average Maturity of Fed Holdings...
The evolution
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They want you to see their deeds in action. Rape must be better when they see you watching your own suffering.
"A little patience, and we shall see the reign of witches pass over, their spells dissolved, and the people recovering their true sight, restoring their government to its true principles. It is true, that in the meantime, we are suffering deeply in spirit, and incurring the horrors of a war, and long oppressions of enormous public debt."
~Thomas Jefferson
Time for Obama to decapitate this anti-banker terrorists head from the nickel... right Ben?...
http://college.cengage.com/history/ayers_primary_sources/jefferson_taylo...
Uncle Tommy Obama?
Look at that fucker, Kevin Henry, trying to goose this market green before close.
redrum....redrum...
Jefferson?... Wasn't he a 'racist' 'anti-semite' slaveowner?... If he hadn'ta been documented as having sex with one of his slaves he mighta made it onto the $3 dollar bill instead of the 2...
How can you be a racist if you're having sex with your negro slaves?
How can Rocco Siffredi be a misogynist if he's having sex at all?...
Same way you can still be a vegetarian and have sex with animals. Just spit balling here.
although i dont know you from adam....i put out an apb on you yesterday....thought you were suicided...nice to see you are alive and well...
Little patience, mmm yeah, mm yeah
Need a little patience, yeah
Just a little patience, yeah
Some more patience, yeah
Could use some patience, yeah
Gotta have some patience, yeah
All it takes is patience
Just a little patience
Is all you need
Ben is a bigger dick than Axel
Operation 'Titty Twister' completed... Operation 'Purple Nurple' at bat... Operation 'Ruby Booby' on deck...
And Operation Stiff Dick - those Fed charts look like a they're on Viagra.
Rule #1: Anything Fed says it's pure propaganda
They said they're buying $85b/month? It's propaganda
It was probably double that
Assume you're right. Assume treasuries are getting in short supply and repos are becoming less reliable. Why are treasuries dropping at the rate they are. I would think they should be more valuable but suddenly they are getting treated like the toilet tissue we have long accused them of being. Why now? Why are banks that are floating in a tide of printed liquidity suddenly acting short on cash? What monkey wrench got thrown in the gears, or is it front running something the peons don't get to know yet?
Because tapering has already started, it's been few weeks as testing.
Testing about pre-planned collapse currently on schedule.
Deeetroit's old news.
Der Volk waking up about Calipornia? Now that will be one world class political cluster fuck.
Got popcorn?
LOL. A lot of them
i read an article that the repo rate is negative almost 3%. is the fed short the securities? or hss enriching poor innocent wallstreet?
Look at the short interest in TLT. 2 days ago it was 52%. Today it is 62%.
I dont have the mind of a quant trader. maybe hedgies shorting long bond and buying short end?
Santelli was talking about shortage of collateral today as well. hopefully this could mean a short squeeze on the shytes, as I am still long my munis.
Long munis being a political stance............starve the beast.
Maybe if they make a trillion dollar coin they could use it as collaterol to print more money.
lack of imagination you are, 10 giga-trillion coin, and not a penny less
Like the cute little imp on TV says: infinity x infinity
You are right. That penny might be worth more than the other $999,999,999,999,999,999.99 of the coin.
we all need to stop messing around with risky credit and btfd
The Fed's balance sheet is a lot larger than they state. So many off the balance sheet items.
Yes, well, be that as it may, it's 3:30 and the algos seem to have just hit the turbo boost switch and are gunning for a perfect 21 Tuesdays in a row of glowing financial genocide green. Will they make it? (Looking at the /ES right now, I'd have to say: yes)
It's a fight to maintain credibility! Meh!
we are gonna do it guys! everyone get in there and btfd!
It's written in the holy bible
markets r heading towards the green.
i made a comment in another thread saying how i want to see if bernanke will concede today or will fight to death like a competitor to keep the streak intact.
either way, he is not going down without a fight. the manipulation is just too funny not to laugh at this point.
Its like the guy reads ZH. He can't stand the fact that Tyler has let everyone in on his little scam, but at the same time he can't help himself. Just one more quarter in the slot and I promise to stop yanking on this one armed bandit.
F = MA : MV = PQ : OMFG
Physical World : Ivory Tower World : Banker Shadow World
not good when both stock AND flow are falling, which is what is happening
www.imf.org/external/pubs/ft/wp/2011/wp11256.pdf
The last few pages (20-23) do a nice job of explaining the the math
Come Sail Away - Styx (with lyrics)
http://www.youtube.com/watch?v=Z1_JWS7rQQE (6:01)
Styx - Mr. Roboto (Music Video)
http://www.youtube.com/watch?v=CzzZkkiJMv8 (5:35)
im rooting for a green close.
why u may ask?
its simple. i want blood. at 1 pm i thought we can realistcally see a 200 plus loss on dow today because the selling was intense.
however, the ponzi scheme has come back so far, that even if we finish in the red it would prob only be by like 40 pts dow, which is nothing at these index prices.
when u take into account how much we were down at the lows, and the time of the lows also, and considering its tuesday, 20 in a row, it would be to funny to witness a green close. so if its between a flat red close or a green close, ill take green today. and then i will laugh my ass off and curse bernanke out.
this is insane, coming back on nothing, but all i hear is the assholes on cnbc say ''buyers putting their money to work''.
there are no buyers, its all the fed and big banks that are using free money. no retail guy is heavily involved
As I wrote earlier this morning, the market is conditioned now to expect the Fed to save it every day. If there is ever a day where we are down 300 at 3:30, panic will set in and it will go to -500 and the circuit breakers will be popping.
At this point I doubt any "retail guys" could make a statistical difference even if he was BTFDing.
Bumke gave it a biiiig ramp........to make sure you know he can put invisible bucks in faster than you can take the real ones out.
Ah, the market as the new virtual ATM.
I'd like to play, but how do you pull out Bernanke Clown Buxs if you don't put any in?
Is there an Joe Schmuck EBT card for the S&P 500 I can apply for from JPMorgue?
This is just insanity! Going back to the Esther George porn look-up!
It's unfortunate that with so much seemingly effortless flow of sound yet entertaining data Tyler and his ZH team rolls out on a daily basis that these A-Holes in control deflect reality. Will this ever cease?
Just more grist for the mill.
Don't you know when you've been click baited?
Paging Ben Bernanke! The Algo guys wanna know if they can piss off home.
New Jim Willie post entitled "USTBond return to sender"
silverdoctors.com/jim-willie-ustbond-return-to-sender/
Streak broken, bitchez.
AAAAARRRRRGGGHHHHH,
WE NEED MORE DEFICITS SO THERE IS NO COLLATERAL SHORTAGE....RIGHT, PK?
Serious question, why is the Fed's purchasing of all available bonds a problem? They have no requirement to sell them again, and the Treasury receives the interest proceeds. Banks aren't lending, so no inflation in the truest sense of money multiplied, money supply, and no velocity.
I am missing something,(probably with the banks)any guidance is appreciated.