Fed Cuts May POMO To Only $24 Billion From $30 Billion

Tyler Durden's picture

One hour after announcing that the Fed would, as expected, cut its monthly Treasury purchases, aka stock market liquidity injections to $25 billion (and $20 billion in MBS), the NY Fed released its POMO schedule for the month of May. The key highlights:

  • "The Desk plans to purchase approximately $24 billion in Treasury securities over the month of May. This amount is approximately $1 billion less than the stated pace of $25 billion per month, given that purchases conducted in April exceeded the target by approximately $1 billion."
  • There will be "only" 16 POMO days, down from the usual 18.
  • The largest POMO days will be Monday May 12, when the Fed will inject $2.25-$3.0 billion into the market and Thursday, May 29, when another $2.50-$3.25 billion will be allocated to stocks.
  • There will be no POMO on Wednesday May 7, Thursday May 15, and Wednesday May 26. Needless to say, for those so inclined, these may be the better shorting entry points.

At this pace POMO will be over by December, although expect the market to enter full freakout mode when the Fed is only monetizing a paltry $10-15 billion on about half the days of the month.

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NOTW777's picture

and WHO believes this?

audit the fed

maskone909's picture

They continue to create straw buyers for purchase of treasuries. There is no taper. There is only insolvency.

NotApplicable's picture

That reverse-repo must be working wonders for the economy!

max2205's picture

Good to see somethings don't change

strannick's picture

Good old Belgium to the rescue

We were there for them in double you eye eye, and they got our backs now. They must've been saving for generations to be buying all these Treasuries...

prodigious_idea's picture

Nothing to do with savings.  Euroclear is based in Belgium and supplies Treasuries to hundreds of clients that include institutional investors, clearing houses, central banks and European countries.

Keyser's picture

Which boils down to the Fed monetizing the debt, off balance sheet... Oh what a wicked web we weave... 

 

Chupacabra-322's picture

@ maskone909,

Insolvency? We've been insolvent for quite some time.

The Criminality is no longer "hidden in plain veil." It's all now very out in the open for all the world to see. I don't know if you noticed or not but the world is no longer cheering us on.

The Criminal UNITED STATES, CORP. INC, is now the Totalitarian Authoritarian Fascist world power.

maskone909's picture

Whats sad is that when American society deterioration accelerates, the UN will probably assume rule of law, and whats left of our constitution will be swept under the rug and the sheep will applaud it.

Keyser's picture

By sheeple I assume you mean the useless eaters that inhabit the liberal bastions of our society... I can assure you that there are many, many more that feel this way... 

https://www.youtube.com/watch?v=DVi-cqRG-jY

Event Horizon's picture

That Belguim proxy will have to pick up the slack

TideFighter's picture

"and WHO believes this?

audit the fed"

AUDIT NOTHING-Would be like checking the pulse of a decapitated man.

Close the fucker down.

NOTW777's picture

this is like a menu for bankers - prices can change but order what you like

VD's picture

it's on the tab....

ebworthen's picture

So they're cutting it by $6 Billion per month?

Sounds like they have some surplus to send me my $3 Million tax free.

Considering the 2009 bailouts to banks/insurers/corporations of $800 Billion five years ago - make it $4 Million (inflation).

Kaiser Sousa's picture

Full Spectrum Bullshit...

im stackin.

NOTW777's picture

why is it every time they "taper" yields fall?  belgium? what?

Rainman's picture

I think it's called the central banker reacharound

HpDeskjet's picture

No, it's very fucking simple: People buy risky assets (i.e. anything except AAA government bonds), on the promise of more QE. When that liquidity pump slows, they return to their "normal" habitat and sell risky assets. This is putting a cap on interest rates. For now, the liquidity pump is big enough (=> QE > monthly net treasury issuance), so the herd rightly does not consider tapering as tightening. However, from next taper (somewhere beginning june) QE < monthly net treasury issuance, and liquidity is actually tightened in US. Question is will other central banks make up for it? If no S&P will go south hard

new game's picture

foreign buyers, whose econ fucked by inflation export-go figure...

plus there is about 4 trillion extra dollars out and about looking for a place to rest...

q99x2's picture

Right and the oligarch families working out of brussels to take over the world since WWII are going to buy 54 billion in US treasuries. Basically enough to keep stocks climbing and enough fo fund the DHS to do some serious damage when they pull the plug.

q99x2's picture

Our trannies deserve better POMOs.

Arrest the FED for treason.

Seasmoke's picture

At this point. What is the point ?

Rainman's picture

Point is I only got to work 4 Tuesdays next month.

Bernoulli's picture

Will those people responsible for what will happen to all of us be put to jail one day?

I would hope so.

jubber's picture

How about the secret POMO? you know the one that sends US futures up  EVERY overnight session when the US Stock market is closed!

fonzannoon's picture

as long as there is no volume in the market it looks like we can drift towards stock nirvana, even as people pile into bawnds.

NotApplicable's picture

Just think of how great it will all be once volume hits zero. Why then, even the algos can take a well deserved break!

what&#039;s that smell's picture

full freak out mode? gimme a break!

all-time-highs in both DOW and S&P500 on a monthly closing basis.

BTFDOWATH unless you BTFS&P500ATH

 

Fuh Querada's picture

POMO again. How's about some PETERO for once?

TalkToLind's picture

I'm tapering, boss...I'm tapering.  ~Cool Hand Janet