Massive $6.3 Billion POMO Closes

Ben Batmanke saves the day again. Today's POMO is a whopper: at $6.3 billion it is the largest since the announcement of QE Lite (not the largest ever mind you - next month, for example we will see $15-20 billion daily POMOs). The submitted to accepted ratio was 3.5x as PDs gladly tried to convert $21.8 billion worth of 7-10 Year Bonds into shares of Apple, Amazon, Google and Netflix. Following last week's $4.7 billion POMO, today's action bring the Fed's balance sheet to $831 billion. Japan - watch out. And now the HFTs are stuck in churn mode as the liquidity infusion is done for the day. Next POMO - Wednesday.