Fed Frontrunning Success Rate: 100%

POMO is over, and with great regret we inform readers that the Fed now has zero credibility as the trades we expected to be precisely those most frontrun by the market are exactly as predicted. In other words: the CUSIPs anticipated to be monetized, and which we advised readers to lever up, buy, and flip them back to the Fed within a day, were precisely the ones that were put back. Fundamental analysis - you are fired. Enter - 100% Fed Frontrunning success rate.

From yesterday:

Tomorrow's POMO will focus on bonds between 2013-2014. Here are the bonds most likely to be bought:

  • 1.750% of 4/15/2013
  • 1.375% of 5/15/2013
  • 1.125% of 6/15/2013
  • 0.5% of 10/15/2013
  • 0.75% of 09/15/2013

Buy these today for a flip to the Fed tomorrow. Don't forget to apply a few million turns of leverage.

Note the CUSIP bought today (highlighted) and compare to CUSIPs suggested yesterday:

The market is now formally dead. Everything else is noise and what the Fed will buy. As for the PDs who suddenly find themselves with $2.5 billion in excess cash leveraged 30 times, they are now actively bidding up Amazon: after all leaving the stock end red may very well bring the ponzi system to a complete collapse... Just ask Madoff.