The Fed bought $70 billion in Treasuries and $40 billion in MBS from Primary Dealers today. That’s a month’s worth of old QE in a day. They’ve been doing it every day this week and will do it again Thursday and Friday.
So $300 or so billion has bought them 300 S&P points so far this week. A billion dollars a point. At this rate it will only take a trillion to get the market back to the highs. Only.
There’s no guarantee this will stick. I’ll withhold judgment until the S&P 500 either hold a breakout above 2550, or shows that it can’t. And it will be interesting to watch the price change of the S&P per billion of QE. Watch Out if each point starts getting more expensive.
To find out what the Fed’s actions ultimately mean for your investments, and trading strategy, join me at Liquidity Trader.
Here are the results of today’s operations.
Treasuries:
OPERATION – RESULTS
Operation Date: 03/25/2020
Operation Type: Outright Coupon Purchase
Release Time: 02:30 PM
Close Time: 02:50 PM
Settlement Date: 03/26/2020
Maturity/Call Date Range: 03/31/2020 – 06/15/2022
Total Par Amt Accepted (mlns) : $24,000
Total Par Amt Submitted (mlns) : $40,562
OPERATION – RESULTS
Operation Date: 03/25/2020
Operation Type: Outright Coupon Purchase
Release Time: 01:39 PM
Close Time: 02:00 PM
Settlement Date: 03/26/2020
Maturity/Call Date Range: 05/15/2040 – 02/15/2050
Total Par Amt Accepted (mlns) : $5,000
Total Par Amt Submitted (mlns) : $8,309
OPERATION – RESULTS
Operation Date: 03/25/2020
Operation Type: Outright TIPS Purchase
Release Time: 12:50 PM
Close Time: 01:10 PM
Settlement Date: 03/26/2020
Maturity/Call Date Range: 04/15/2021 – 07/15/2027
Total Par Amt Accepted (mlns) : $5,600
Total Par Amt Submitted (mlns) : $7,328
OPERATION – RESULTS
Operation Date: 03/25/2020
Operation Type: Outright Coupon Purchase
Release Time: 12:00 PM
Close Time: 12:20 PM
Settlement Date: 03/26/2020
Maturity/Call Date Range: 06/30/2022 – 08/31/2024
Total Par Amt Accepted (mlns) : $14,348
Total Par Amt Submitted (mlns) : $23,186
OPERATION – RESULTS
Operation Date: 03/25/2020
Operation Type: Outright Coupon Purchase
Release Time: 11:00 AM
Close Time: 11:20 AM
Settlement Date: 03/26/2020
Maturity/Call Date Range: 05/15/2040 – 02/15/2050
Total Par Amt Accepted (mlns) : $5,000
Total Par Amt Submitted (mlns) : $8,954
OPERATION – RESULTS
Operation Date: 03/25/2020
Operation Type: Outright Coupon Purchase
Release Time: 10:20 AM
Close Time: 10:40 AM
Settlement Date: 03/26/2020
Maturity/Call Date Range: 09/30/2024 – 02/28/2027
Total Par Amt Accepted (mlns) : $11,000
Total Par Amt Submitted (mlns) : $20,937
OPERATION – RESULTS
Operation Date: 03/25/2020
Operation Type: Outright Coupon Purchase
Release Time: 09:29 AM
Close Time: 09:50 AM
Settlement Date: 03/26/2020
Maturity/Call Date Range: 05/15/2027 – 02/15/2040
Total Par Amt Accepted (mlns) : $6,000
Total Par Amt Submitted (mlns) : $11,163
MBS:OPERATION RESULTS
OPERATION RESULTS
Operation Date: March 25, 2020
Operation: Purchases
Operation Type: TBA
Auction Method: Multiple Price
Release Time: 01:59 PM
Close Time: 02:30 PM
Settlement Date: May 13, 2020 (May Class A)
Total Amt Accepted (million): $ 9,300 par
Total Amt Submitted (million): $ 16,983 par
Operation Date: March 25, 2020
Operation: Purchases
Operation Type: TBA
Auction Method: Multiple Price
Release Time: 01:00 PM
Close Time: 01:30 PM
Settlement Date: May 20, 2020 (May Class C)
Total Amt Accepted (million): $ 8,100 par
Total Amt Submitted (million): $ 11,637 par
OPERATION RESULTS
Operation Date: March 25, 2020
Operation: Purchases
Operation Type: TBA
Auction Method: Multiple Price
Release Time: 11:15 AM
Close Time: 11:45 AM
Settlement Date: May 13, 2020 (May Class A)
Total Amt Accepted (million): $ 9,300 par
Total Amt Submitted (million): $ 21,816 par
OPERATION RESULTS
Operation Date: March 25, 2020
Operation: Purchases
Operation Type: TBA
Auction Method: Multiple Price
Release Time: 10:15 AM
Close Time: 10:45 AM
Settlement Date: May 18, 2020 (May Class B)
Total Amt Accepted (million): $ 1,986 par
Total Amt Submitted (million): $ 4,510 par
OPERATION RESULTS
Operation Date: March 25, 2020
Operation: Purchases
Operation Type: TBA
Auction Method: Multiple Price
Release Time: 09:15 AM
Close Time: 09:45 AM
Settlement Date: March 30, 2020 (March Class A)
Total Amt Accepted (million): $ 11,190 par
Total Amt Submitted (million): $ 22,444 par
