The Treasury has rescheduled the announcement on the 2, 5, and 7 year notes, originally scheduled to be announced yesterday, to next Thursday. The auctions are now tentative scheduled for December 27, 28, and 29, instead of next Tuesday, Wednesday, and Thursday. However, settlement has been pushed forward to December 31, instead of January 3. Amounts will be announced next Thursday.
The Fed had scheduled POMO double pump jobs next week, with two operations each on December 20 and December 21, and one on the 22nd totaling $22.5 billion to $30.5 billion. Unless the Fed reschedules this, all this cash will have nowhere to go for another week. Traders are apparently front running that fact, with the 10 year yield plunging 20 basis points since yesterday’s peak.
Details and analysis to follow in the Professional Edition Fed Report to be posted this evening.
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