Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

QE4 Officially Begins: Fed’s First T-Bill Purchase Is 4x Oversubscribed Amid Massive Liquidity Demand

Courtesy of ZeroHedge View original post here.

QE4 has officially arrived.

As previewed yesterday, moments ago the Fed concluded the first POMO – as in Permanent Open Market Operation, not to be confused with Temporary – from previously announced T-Bill purchases ($60 billion per month, $7.5 billion per operation), and what it showed is a confirmation of message sent by today's repo operation: there is an unprecedented demand for liquidity.

Specifically, the Fed purchase $7.501 billion in Treasury Bills out of $32.569 billion in T-Bills submitted. In other words, the operation was 4.3x oversubscribed, and when combined with the oversubscribed repo operation announced earlier today, confirms that there is a dramatic need for liquidity among the Primary Dealer community.

Separately, as previewed yesterday, the Fed did not purchase securities with less than 4 weeks to maturity or cash  management bills, and sure enough, the "nearest" maturity purchased today was Bills maturing on Nov 26, for some $20 million. The most aggressive purchases were for CUSIPs TB5 and TN9, for the amount $3.37BN and $1.465BN, respectively, and which mature on Jan 16, 2020 and Oct 8, 2020. The sub-1 month Bills were all excluded from today's operation.

And with that, QE 4, pardon, "Not A QE" has begun, and will continue "at least into the second quarter" of 2020, by which point the Fed will have purchased over $300 billion in Bills, and will at some point find itself compelled to shift to buying short-maturity coupons as well as the "Not A QE" gradually morphs into a full-blown QE.

 


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!