Showing posts with label POMO. Show all posts
Showing posts with label POMO. Show all posts
Monday, November 8, 2010
Today's POMO: $6.26B
Despite the Fed's $6.26B POMO today, the Dow remains down 60 pts. With little on the economic calendar, we could sell off for the rest of today and tomorrow, until the new POMO schedule for the coming weeks is released on Wednesday.
Wednesday, October 27, 2010
Market Update
With no POMO on the calendar today and the WSJ suggesting that QE2 may be a couple of hundred billion over several months, but by most measures a disappointment for the bulls who were using it as an excuse to run up the market over the past two months, futures are looking down big this morning.
Yesterday, William Dudley, the president of the FRB NY said the central bank cannot fix the sluggish economy. If you recall from the special report I wrote on QE2, Dudley has been one of the largest advocates of loosening monetary policy. Perhaps with currency wars and protectionism, angry allies who have been forced into currency interventions of their own as a result of our actions, and an American electorate who has by now somewhat begun to understood the risks of more Fed action, Dudley has decided that it may be time to back it off a bit.
Yesterday, William Dudley, the president of the FRB NY said the central bank cannot fix the sluggish economy. If you recall from the special report I wrote on QE2, Dudley has been one of the largest advocates of loosening monetary policy. Perhaps with currency wars and protectionism, angry allies who have been forced into currency interventions of their own as a result of our actions, and an American electorate who has by now somewhat begun to understood the risks of more Fed action, Dudley has decided that it may be time to back it off a bit.
Monday, October 18, 2010
Thursday, October 14, 2010
POMO Schedule: $32B through Nov 8th
Tentative Outright Treasury Operation Schedule
Across all operations in the schedule listed below, the Desk plans to purchase approximately $32 billion. This is the amount of principal payments from agency debt and agency MBS expected to be received between mid-October and mid-November.
October 15, 2010 Outright Treasury Coupon Purchase
October 18, 2010 Outright Treasury Coupon Purchase
October 20, 2010 Outright TIPS Purchase
October 22, 2010 Outright Treasury Coupon Purchase
October 26, 2010 Outright Treasury Coupon Purchase
October 28, 2010 Outright Treasury Coupon Purchase
November 1, 2010 Outright Treasury Coupon Purchase
November 4, 2010 Outright Treasury Coupon Purchase
November 8, 2010 Outright Treasury Coupon Purchase
Across all operations in the schedule listed below, the Desk plans to purchase approximately $32 billion. This is the amount of principal payments from agency debt and agency MBS expected to be received between mid-October and mid-November.
October 15, 2010 Outright Treasury Coupon Purchase
October 18, 2010 Outright Treasury Coupon Purchase
October 20, 2010 Outright TIPS Purchase
October 22, 2010 Outright Treasury Coupon Purchase
October 26, 2010 Outright Treasury Coupon Purchase
October 28, 2010 Outright Treasury Coupon Purchase
November 1, 2010 Outright Treasury Coupon Purchase
November 4, 2010 Outright Treasury Coupon Purchase
November 8, 2010 Outright Treasury Coupon Purchase
Tuesday, October 12, 2010
Market Update
Futures are looking down this morning as San Francisco Fed President, Janet Yellen, warned that excessively easy monetary policy could create bubbles in the future. "It is conceivable that accomodative monetary policy could provide tinder for a buildup of leverage and excessive risk-taking." Since the Fed has been involved in nearly every US bubble, it is probably a bit more concrete than it is merely 'conceivable' but I'm glad to see someone on the FOMC express concern.
Also weighing on the markets this morning is India's August industrial production miss that came in at 5.6% (a 15 month low.) The number is very volatile due to the lumpy nature of capital goods orders, but certainly a 5.6% print vs. expectations of 10%+ is something to keep an eye on.
China's auto sales slowed in September as tax breaks and subsidies began to roll off. Sales rose 17 percent YoY to 1.56M, down a bit from 18% in August. But July was 16% growth, and June was 21% growth so while the auto industry in China is being described as normalizing, it must be pointed out that a.) they are still selling more cars than we are domestically in the U.S. and b.) the absolute growth in China continues to be tremendous with sales of 13.6M vehicles in 2009 (45% growth) and on pace to do about 17M vehicles in 2010 (30% growth.) Of note, Ford saw sales in China rise 26%, up from 24% in August. Ford sales in China were up 40% in the first nine months of the year at 419,073 units. GM on the contrary rose 15%, down from 19% growth in August. For the first 9 months of the year, GM sold a record 1.78M vehicles.
Goldman Sachs reports that it has heard from bank employees in China who say that the government has told its largest banks that they must increase reserves to 17.5% (up 50 bps) in order to cool inflation and housing prices. There has been no formal announcement from the government in Beijing. Estimates suggest that this latest reserve hike would remove approx 200B yuan or $29B out of the lending pool. Banks will be allowed to lend a total of 7.5T yuan ($1.1T) this year vs. 9.6T yuan ($1.4T) in 2009.
Despite all the bad economic news this morning (summarizing...signs of slowing growth in China and India, INTC reporting after the close today after negatively pre-announcing a few weeks ago, Fed warning that QE2 expectations for November may be a bit premature, etc) there is nothing that will change the fact that until investors are disappointed by either earnings or the Fed fails to announce QE2 on November 3rd, the market will hold its level. That being said, I do expect earnings to be somewhat disappointing especially for the banks and brokers. We have JPM reporting earnings on Thursday. With a bad print possible, I wonder that when the Fed releases its POMO schedule for the coming weeks on Wednesday, if it doesn't include a healthy dose of Thursday and Friday this week???
FOMC minutes are due out at 11 am PST.
Also weighing on the markets this morning is India's August industrial production miss that came in at 5.6% (a 15 month low.) The number is very volatile due to the lumpy nature of capital goods orders, but certainly a 5.6% print vs. expectations of 10%+ is something to keep an eye on.
China's auto sales slowed in September as tax breaks and subsidies began to roll off. Sales rose 17 percent YoY to 1.56M, down a bit from 18% in August. But July was 16% growth, and June was 21% growth so while the auto industry in China is being described as normalizing, it must be pointed out that a.) they are still selling more cars than we are domestically in the U.S. and b.) the absolute growth in China continues to be tremendous with sales of 13.6M vehicles in 2009 (45% growth) and on pace to do about 17M vehicles in 2010 (30% growth.) Of note, Ford saw sales in China rise 26%, up from 24% in August. Ford sales in China were up 40% in the first nine months of the year at 419,073 units. GM on the contrary rose 15%, down from 19% growth in August. For the first 9 months of the year, GM sold a record 1.78M vehicles.
Goldman Sachs reports that it has heard from bank employees in China who say that the government has told its largest banks that they must increase reserves to 17.5% (up 50 bps) in order to cool inflation and housing prices. There has been no formal announcement from the government in Beijing. Estimates suggest that this latest reserve hike would remove approx 200B yuan or $29B out of the lending pool. Banks will be allowed to lend a total of 7.5T yuan ($1.1T) this year vs. 9.6T yuan ($1.4T) in 2009.
Despite all the bad economic news this morning (summarizing...signs of slowing growth in China and India, INTC reporting after the close today after negatively pre-announcing a few weeks ago, Fed warning that QE2 expectations for November may be a bit premature, etc) there is nothing that will change the fact that until investors are disappointed by either earnings or the Fed fails to announce QE2 on November 3rd, the market will hold its level. That being said, I do expect earnings to be somewhat disappointing especially for the banks and brokers. We have JPM reporting earnings on Thursday. With a bad print possible, I wonder that when the Fed releases its POMO schedule for the coming weeks on Wednesday, if it doesn't include a healthy dose of Thursday and Friday this week???
FOMC minutes are due out at 11 am PST.
Wednesday, October 6, 2010
POMO - Fed is now #2 holder of US debt
Today's POMO came in at $2.069B, vaulting the Fed into the Number 2 spot for largest holders of U.S. debt, passing Japan's $821B (as of July 2010) at $821.128B.
Today's Outlook - Ireland Downgrade, Huge ADP Emp Miss, and POMO
Yesterday the market surged higher as the Fed purchased $5.19B of 2016-2020 Treasuries and the primary dealers drove BIDU, NFLX, and AMZN up 5% or more. The dollar sank to an 8-month low against the euro as market participants continue to believe that the Fed will launch a $1 Trillion asset purchased program (QE2) on November 3rd, on top of the $400B or so of expected POMO over 2011. Also helping the market was the ISM Services Index which came in at 53.2 vs. the 51.8 that had been expected. Gold was up 2% to a new all-time high of $1340.60/ounce, and oil reached 82.48. Lastly of major note was Japan announcing plans for a 5 trillion yen fund to purchase bonds and ABS securities. So QE announcement out of Japan, and as we are not going to lose the race to hyperinflationary-causing currency debasement, it looks all the more likely that we will see QE2 sometime over the next few months.
The Dow finished at a fresh 4-month high at 10,944 up 193.45 points. The S&P closed at 1,160.75, and the Nasdaq at 2,399.
Futures are slightly lower this morning on ADP Employment Change data which came in at -39K vs. +10K prior and +20K forecast. Ouch. We'd probably be looking a lot lower, but we will have another batch of POMO at 7:15 a.m. PST. Judging by its effects yesterday, and also given that it is the last installment of POMO for a number of days, its likely to be as robust as yesterday's.
Ireland was downgraded to A+ from AA- and put on negative outlook by Fitch. "The downgrade of Ireland reflects the exceptional and greater-than expected fiscal cost associated with the government's recapitalization of the Irish banks, especially Anglo Irish Bank." Fitch said this morning.
The FT reports this morning that IMF chief Dominique Strauss-Kahn has said that governments are risking a currency war if they try to manipulate exchange rates to solve domestic problems.
The IMF also has a report out this morning lowering its US growth forecast to 2.6% and 2.7% for 2010 and 2011, respectively. These revisions are -0.7% and -0.6%. IMF Chief Economist Olivier Blanchard told a press conference, "But it is an unbalanced recovery, sluggish in advanced countries, much stronger in emerging and developing countries."
Dow +100 today? Why not?
The Dow finished at a fresh 4-month high at 10,944 up 193.45 points. The S&P closed at 1,160.75, and the Nasdaq at 2,399.
Futures are slightly lower this morning on ADP Employment Change data which came in at -39K vs. +10K prior and +20K forecast. Ouch. We'd probably be looking a lot lower, but we will have another batch of POMO at 7:15 a.m. PST. Judging by its effects yesterday, and also given that it is the last installment of POMO for a number of days, its likely to be as robust as yesterday's.
Ireland was downgraded to A+ from AA- and put on negative outlook by Fitch. "The downgrade of Ireland reflects the exceptional and greater-than expected fiscal cost associated with the government's recapitalization of the Irish banks, especially Anglo Irish Bank." Fitch said this morning.
The FT reports this morning that IMF chief Dominique Strauss-Kahn has said that governments are risking a currency war if they try to manipulate exchange rates to solve domestic problems.
The IMF also has a report out this morning lowering its US growth forecast to 2.6% and 2.7% for 2010 and 2011, respectively. These revisions are -0.7% and -0.6%. IMF Chief Economist Olivier Blanchard told a press conference, "But it is an unbalanced recovery, sluggish in advanced countries, much stronger in emerging and developing countries."
Dow +100 today? Why not?
Monday, October 4, 2010
Brian Sack, Head of FRBNY Desk (POMO), Regarding QE2
Notes from Brian Sack's remarks at the 2010 CFA Institute Fixed Income Management Conference, Newport Beach, California
Most FOMC members expect the unemployment rate to remain above 8.25 percent through 2011 and the inflation rate to remain below its mandate-consistent level through 2012.
The economy remains vulnerable to downside surprises that could take both output and inflation further away from the FOMC's objectives.
Fed used to maintain a 'relatively simple portfolio' of between $700B and $800B of Treasury securities.
Announced in November 2008 the purchase of up to $600B of agency debt and agency MBS.
In March 2009 it expanded the program to include cumulative purchases of up to $1.75T of agency debt, agency MBS, and longer-term Treasury securities.
Domestic securities held in the System Open Market Account (SOMA) reached a peak in June 2010 at $2.1T.
At that point this amount started to shrink as agency debt and agency MBS held in the SOMA were allowed to run off as they matured or were repaid.
At August Fed meeting, the decision was made to hold the size of the SOMA portfolio steady.
At this time, 'the Desk' was projecting that approximately $340B of the Fed Reserve's MBS holdings would be paid down from that time until the end of 2011. Another $55B would mature by the end of 2011. So expected shrinkage of $395B (~$400B).
Decision is to purchase longer-term Treasury securities.(As we've witnessed in Permanent Open Market Operations over the past few weeks.)
"The effect of asset purchases on the economy remains a point of ongoing debate..."
"My own perspective is aligned with the view expressed by Chairman Bernanke in Jackson Hole-that the effects arise primarily through a portfolio balance channel. Under that view, our asset holdings keep longer-term interest rates lower than otherwise by reducing the aggregate amount of risk that the private markets have to bear. In particular, by purchasing longer-term securities, the Federal Reserve removes duration risk from the market, which should help to reduce the term premium that investors demand for holding longer-term securities. That effect should in turn boost other asset prices, as those investors displaced by the Fed's purchases would likely seek to hold alternative types of securities."
[WOW, not that it wasn't previously obvious to anyone paying attention, but did Mr. Sack just admit that the Fed's real mandate isn't of full (un)employment and stable (bubble-like) asset prices but really about boosting prices of other 'securities' such as....well, stocks??? If that's the case, is the Fed, or at least Mr. Sack, admitting that the Fed is using taxpayer dollars to provide an opportunity to allow insiders to overwhelming liquidate their equity positions in their own companies (as has been shown by the weekly data.)??]
Value of the SOMA portfolio just ahead of the August meeting was $2.054 T.
"We are running at a pace of $27B in purchases this month, and we expect that pace to bump up to around $30B for the next several months."
"We currently project that cumulative amount of principal payments on agency debt and agency MBS through 2011 will be somewhat higher than the estimates provided at the August FOMC meeting."
So...call it $450-$500B in additonal purchases through YE11. If that is the case, and we are done on $27, and running at $30B for perhaps the next 3 months, then the average monthly purchase through 2011 will be approx. $23.583B.
Focus will be on Treasury securities with remaining maturities between 2 and 10 years, although some will occur outside this segment.
Avg duration of 5 years.
Reminds us that the reinvestment strategy, of course, involves a reallocation of the portfolio from agency debt and MBS into Treasury securities.
Mr. Sack believes that Treasuries and agency MBS purchases operate similarly to remove duration risk from the market. Concern however is that as MBS purchases reomve prepayment risk from the market and Treasuries do not, spreads on MBS to Treasuries could widen. If so, Fed would proably again buy agency paper.
Notes the qualitative policy approach of the Fed (the FOMC's communique's) have, "generated a sizable market response."
On Aggregate Demand and the Effect of QE on the Greater Economy (ex-the markets):
"Some observers have argued that balance sheet changes, even if they influence longer-term interest rates, will not affect the economy because the transmission mechanism is broken. This point is overstated in my view. It is true that certain aspects of the transmission mechanism are clogged because of the credit constraints facing some households and businesses, and it is true that monetary policy cannot directly target those parties that are the most constrained. Nevertheless, balance sheet policy can still lower longer-term borrowing costs for many households and businesses, and it adds to household wealth by keeping asset prices higher than they otherwise would be. It seems highly unlikely that the economy is completely insensitive to borrowing costs and wealth, or to other changes in broad financial conditions."
So admits that QE is a tool to maintain artificially inflated asset prices even though this approach does not assist those who most desparately need equilibrium to return to the markets for wages, assets, necessities, etc. He believes it is very unlikely that 1) high stock prices and 2) wealth preservation for the top 20% don't have a trickle-down effect for the average citizen. Well, judging by recent data which suggests all-time record domestic income inequality (that has gone parabolic over the last thirty or so years), I'm not sure anyone puts much credence in Reaganomics anymore...except the Fed, of course.
Costs of balance sheet expansion:
"...an important operational consideration is whether the Federal Reserve purchases would strain the functioning of financial markets and cause an erosion of market liquidity." CHECK!
"This issue was present during the first asset purchase program, especially when the pace of weekly purchases reached a peak of about $40B in the middle of last year. The pace of those purchases at times put pressure on liquidity in the MBS market, leading the desk to take mitigating actions when possible."
Says there is more room to expand without issue as the SOMA holds about 12% of outstanding Treasury coupon securities. Treasury supposed to issue around $1.2T of securities over the next year, so plenty of supply. [GOOD-BYE DOLLAR]
He ends with a discussion of how to design a purchase program in a balance sheet expansion is desired. The key element in this portion of the speech seemed to be the idea that rather than announce the amount and type of purchases in advance that it might be wise to allow for some flexibility given the unknown effects such expansion might have. The important part about this is that it suggests that investors will have little clarity regarding the intermediate term actions of the Fed regardless of near term announcements. The market will therefore be incapable of operating under fundamental assumptions for some time...
http://www.newyorkfed.org/newsevents/speeches/2010/sac101004.html
An afterthought:
Last night, while visiting a friend at his rural home, I witnessed a most unusual scene. A raccoon (Procyon lotor) had become trapped in a neighborhood garbage bin. Another raccoon looking over a second bin filled with corn cobs, chicken bones, and various other sundries, decided against his initial selfish impulse and went to the aid of his fellow raccoon rather than having a feast all to himself. I gazed in wonder that these eye-masked marauders of the night were capable of feeling empathy for their fellow creature and acting to assist one another at the expense of their own personal interest. If only those in charge of monetary policy could experience a similar feeling of empathy while destroying the purchasing power of not just the current, but also the future generations of the American middle class...
Most FOMC members expect the unemployment rate to remain above 8.25 percent through 2011 and the inflation rate to remain below its mandate-consistent level through 2012.
The economy remains vulnerable to downside surprises that could take both output and inflation further away from the FOMC's objectives.
Fed used to maintain a 'relatively simple portfolio' of between $700B and $800B of Treasury securities.
Announced in November 2008 the purchase of up to $600B of agency debt and agency MBS.
In March 2009 it expanded the program to include cumulative purchases of up to $1.75T of agency debt, agency MBS, and longer-term Treasury securities.
Domestic securities held in the System Open Market Account (SOMA) reached a peak in June 2010 at $2.1T.
At that point this amount started to shrink as agency debt and agency MBS held in the SOMA were allowed to run off as they matured or were repaid.
At August Fed meeting, the decision was made to hold the size of the SOMA portfolio steady.
At this time, 'the Desk' was projecting that approximately $340B of the Fed Reserve's MBS holdings would be paid down from that time until the end of 2011. Another $55B would mature by the end of 2011. So expected shrinkage of $395B (~$400B).
Decision is to purchase longer-term Treasury securities.(As we've witnessed in Permanent Open Market Operations over the past few weeks.)
"The effect of asset purchases on the economy remains a point of ongoing debate..."
"My own perspective is aligned with the view expressed by Chairman Bernanke in Jackson Hole-that the effects arise primarily through a portfolio balance channel. Under that view, our asset holdings keep longer-term interest rates lower than otherwise by reducing the aggregate amount of risk that the private markets have to bear. In particular, by purchasing longer-term securities, the Federal Reserve removes duration risk from the market, which should help to reduce the term premium that investors demand for holding longer-term securities. That effect should in turn boost other asset prices, as those investors displaced by the Fed's purchases would likely seek to hold alternative types of securities."
[WOW, not that it wasn't previously obvious to anyone paying attention, but did Mr. Sack just admit that the Fed's real mandate isn't of full (un)employment and stable (bubble-like) asset prices but really about boosting prices of other 'securities' such as....well, stocks??? If that's the case, is the Fed, or at least Mr. Sack, admitting that the Fed is using taxpayer dollars to provide an opportunity to allow insiders to overwhelming liquidate their equity positions in their own companies (as has been shown by the weekly data.)??]
Value of the SOMA portfolio just ahead of the August meeting was $2.054 T.
"We are running at a pace of $27B in purchases this month, and we expect that pace to bump up to around $30B for the next several months."
"We currently project that cumulative amount of principal payments on agency debt and agency MBS through 2011 will be somewhat higher than the estimates provided at the August FOMC meeting."
So...call it $450-$500B in additonal purchases through YE11. If that is the case, and we are done on $27, and running at $30B for perhaps the next 3 months, then the average monthly purchase through 2011 will be approx. $23.583B.
Focus will be on Treasury securities with remaining maturities between 2 and 10 years, although some will occur outside this segment.
Avg duration of 5 years.
Reminds us that the reinvestment strategy, of course, involves a reallocation of the portfolio from agency debt and MBS into Treasury securities.
Mr. Sack believes that Treasuries and agency MBS purchases operate similarly to remove duration risk from the market. Concern however is that as MBS purchases reomve prepayment risk from the market and Treasuries do not, spreads on MBS to Treasuries could widen. If so, Fed would proably again buy agency paper.
Notes the qualitative policy approach of the Fed (the FOMC's communique's) have, "generated a sizable market response."
On Aggregate Demand and the Effect of QE on the Greater Economy (ex-the markets):
"Some observers have argued that balance sheet changes, even if they influence longer-term interest rates, will not affect the economy because the transmission mechanism is broken. This point is overstated in my view. It is true that certain aspects of the transmission mechanism are clogged because of the credit constraints facing some households and businesses, and it is true that monetary policy cannot directly target those parties that are the most constrained. Nevertheless, balance sheet policy can still lower longer-term borrowing costs for many households and businesses, and it adds to household wealth by keeping asset prices higher than they otherwise would be. It seems highly unlikely that the economy is completely insensitive to borrowing costs and wealth, or to other changes in broad financial conditions."
So admits that QE is a tool to maintain artificially inflated asset prices even though this approach does not assist those who most desparately need equilibrium to return to the markets for wages, assets, necessities, etc. He believes it is very unlikely that 1) high stock prices and 2) wealth preservation for the top 20% don't have a trickle-down effect for the average citizen. Well, judging by recent data which suggests all-time record domestic income inequality (that has gone parabolic over the last thirty or so years), I'm not sure anyone puts much credence in Reaganomics anymore...except the Fed, of course.
Costs of balance sheet expansion:
"...an important operational consideration is whether the Federal Reserve purchases would strain the functioning of financial markets and cause an erosion of market liquidity." CHECK!
"This issue was present during the first asset purchase program, especially when the pace of weekly purchases reached a peak of about $40B in the middle of last year. The pace of those purchases at times put pressure on liquidity in the MBS market, leading the desk to take mitigating actions when possible."
Says there is more room to expand without issue as the SOMA holds about 12% of outstanding Treasury coupon securities. Treasury supposed to issue around $1.2T of securities over the next year, so plenty of supply. [GOOD-BYE DOLLAR]
He ends with a discussion of how to design a purchase program in a balance sheet expansion is desired. The key element in this portion of the speech seemed to be the idea that rather than announce the amount and type of purchases in advance that it might be wise to allow for some flexibility given the unknown effects such expansion might have. The important part about this is that it suggests that investors will have little clarity regarding the intermediate term actions of the Fed regardless of near term announcements. The market will therefore be incapable of operating under fundamental assumptions for some time...
http://www.newyorkfed.org/newsevents/speeches/2010/sac101004.html
An afterthought:
Last night, while visiting a friend at his rural home, I witnessed a most unusual scene. A raccoon (Procyon lotor) had become trapped in a neighborhood garbage bin. Another raccoon looking over a second bin filled with corn cobs, chicken bones, and various other sundries, decided against his initial selfish impulse and went to the aid of his fellow raccoon rather than having a feast all to himself. I gazed in wonder that these eye-masked marauders of the night were capable of feeling empathy for their fellow creature and acting to assist one another at the expense of their own personal interest. If only those in charge of monetary policy could experience a similar feeling of empathy while destroying the purchasing power of not just the current, but also the future generations of the American middle class...
Thursday, September 30, 2010
POMO Thursday
Japan holds $821B US Treasuries
China holds $867B US Treasuries
Federal Reserve Bank now owns approx $800B and is purchasing approx $10B per week.
Tyler Durden at Zero Hedge points out that, at this rate, the US FRB will soon be the largest holder of US Debt!
This morning, in an odd break from the past few weeks, NFLX, AAPL, AMZN, and BIDU are all in the red. Once the POMO results are released in approx 20 minutes it would not be altogether impossible to see each one of these names catch a bid from the primary dealers. Be careful out there!
UPDATE: Results are in...The Fed purchased just $2.2B of 2021-2040 bonds. No wonder the market is heading south...Dow down 50 odd points after being up almost 100 to start the day. This market will likely be very volatile for the rest of the day.
China holds $867B US Treasuries
Federal Reserve Bank now owns approx $800B and is purchasing approx $10B per week.
Tyler Durden at Zero Hedge points out that, at this rate, the US FRB will soon be the largest holder of US Debt!
This morning, in an odd break from the past few weeks, NFLX, AAPL, AMZN, and BIDU are all in the red. Once the POMO results are released in approx 20 minutes it would not be altogether impossible to see each one of these names catch a bid from the primary dealers. Be careful out there!
UPDATE: Results are in...The Fed purchased just $2.2B of 2021-2040 bonds. No wonder the market is heading south...Dow down 50 odd points after being up almost 100 to start the day. This market will likely be very volatile for the rest of the day.
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