Tyler Durden reports on the Primary Dealers’ manipulation of the POMO schedule today. – Ilene
Fed Cancels POMO
Who would have thought that monetizing our way to a bright Weimar future is "market contingent." With the EU dude crashing the market at 10:59 am and spooking the Primary Dealers, what does one expect?
POMO Extended Until 12:05 PM, Monetization Market Conditions, And Primary Dealers Permitting
Confirming that the Fed’s Weimar monetization practices are entirely dependent on the market, and that POMO can only proceed if the Plunge Protection Team does its job, the earlier cancelled POMO has been rescheduled for 12:05 pm now that the PPT-Citadel team is on the line and grinding ES like it is the new chick at Hustler Club. In other news, going forward, the terrorist will win if and when the bond market crashes at 10:59 am, which sends the entire Sack-Frost monetization model out of line. Next up: Article 15 to be implement in the US between the POMO hours of 10:15 am and 11:00 am, where any headline on Reuters or Bloomberg has to be precleared by an FRBNY NYU intern. Once again we get confirmation that when it comes to decisions on who really runs the country, the Primary Dealers who cancelled their entire POMO order book, come on top.
More color from Jim Bianco:
Liesman just added color … at a few minutes before 11AM ET as the Fed was collecting bids for today’s POMO (5 year sector today), old recycled secretary Chu headlines that the Japanese have "lost control" of the nuke plants and a parital meltdown occurred. The five-year note dived 12 basis points in seconds exposing the dealers to unrealized losses. Since the purpose of QE2 is to allow the dealers to rip-off the Fed and make their 2011 bonus pools, they canceled it until 12:05 ET in hopes things calm down and it will be much easier to tear the Fed’s eyeballs out.
Smoking is now permitted on Primary Dealer trading desks until the Strategic Ink Reserve is replenished.
POMO Closes, Fed Buys $6.6 Billion In 5 Year Bonds
The once-delayed POMO has just been completed as Primary Dealers did not have enough clout to delay it for a second time even as the 5 Years was surging. That the most monetized issued was the OTR just issued QJ2 CUSIP should not surprise anyone.
