The Fed bought $74 billion in Treasuries and $36 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.
The S&P was up 154 points. So the Fed got about 1.4 points per billion. That’s good mileage. There’s not much selling. It’s also blatant market rigging which would not be necessary if the financial system wasn’t leverage to the ninth degree with enough debt to kill a billion billion whales, as in hedge funds, banks, and overleveraged corporate zombies.
Think about it. What impact would this coronavirus have had if banks and corporations had healthy balance sheets, instead of the madness the crooks built up over the last couple of decades.
That’s the reason the system is collapsing, not COVID 19. The virus was just the catalyst. If it wasn’t that, it would have been something else.
I’ll keep track of the Fed’s gas mileage for you. As prices rise, the market will get heavier. There will be more selling, and friction will increase. The Fed’s mileage will begin to suffer.
I have no idea if that will give us an indication of reversal. It’s just an interesting stat for now. We can use this week as a baseline.
To find out what the Fed’s actions ultimately mean for your investments and trading strategy, join me at Liquidity Trader. I’ll give you the lowdown there.
Here are the results of today’s operations.
Treasuries:
OPERATION – RESULTS
Operation Date: 03/26/2020
Operation Type: Outright Coupon Purchase
Release Time: 02:30 PM
Close Time: 02:50 PM
Settlement Date: 03/27/2020
Maturity/Call Date Range: 03/31/2020 – 06/15/2022
Total Par Amt Accepted (mlns) : $24,000
Total Par Amt Submitted (mlns) : $46,363
OPERATION – RESULTS
Operation Date: 03/26/2020
Operation Type: Outright Coupon Purchase
Release Time: 01:40 PM
Close Time: 02:00 PM
Settlement Date: 03/27/2020
Maturity/Call Date Range: 05/15/2040 – 02/15/2050
Total Par Amt Accepted (mlns) : $5,000
Total Par Amt Submitted (mlns) : $9,542
OPERATION – RESULTS
Operation Date: 03/26/2020
Operation Type: Outright TIPS Purchase
Release Time: 12:50 PM
Close Time: 01:10 PM
Settlement Date: 03/27/2020
Maturity/Call Date Range: 01/15/2028 – 02/15/2050
Total Par Amt Accepted (mlns) : $5,680
Total Par Amt Submitted (mlns) : $9,082
OPERATION – RESULTS
Operation Date: 03/26/2020
Operation Type: Outright Coupon Purchase
Release Time: 12:00 PM
Close Time: 12:20 PM
Settlement Date: 03/27/2020
Maturity/Call Date Range: 06/30/2022 – 08/31/2024
Total Par Amt Accepted (mlns) : $17,000
Total Par Amt Submitted (mlns) : $28,246
OPERATION – RESULTS
Operation Date: 03/26/2020
Operation Type: Outright Coupon Purchase
Release Time: 11:00 AM
Close Time: 11:20 AM
Settlement Date: 03/27/2020
Maturity/Call Date Range: 05/15/2040 – 02/15/2050
Total Par Amt Accepted (mlns) : $5,000
Total Par Amt Submitted (mlns) : $10,194
OPERATION – RESULTS
Operation Date: 03/26/2020
Operation Type: Outright Coupon Purchase
Release Time: 10:20 AM
Close Time: 10:40 AM
Settlement Date: 03/27/2020
Maturity/Call Date Range: 09/30/2024 – 02/28/2027
Total Par Amt Accepted (mlns) : $11,000
Total Par Amt Submitted (mlns) : $18,169
OPERATION – RESULTS
Operation Date: 03/26/2020
Operation Type: Outright Coupon Purchase
Release Time: 09:30 AM
Close Time: 09:50 AM
Settlement Date: 03/27/2020
Maturity/Call Date Range: 05/15/2027 – 02/15/2040
Total Par Amt Accepted (mlns) : $6,000
Total Par Amt Submitted (mlns) : $10,696
MBS:OPERATION RESULTS
OPERATION RESULTS
Operation Date: March 26, 2020
Operation: Purchases
Operation Type: TBA
Auction Method: Multiple Price
Release Time: 02:00 PM
Close Time: 02:30 PM
Settlement Date: April 15, 2020 (April Class A)
Total Amt Accepted (million): $ 6,249 par
Total Amt Submitted (million): $ 8,818 par
OPERATION RESULTS
Operation Date: March 26, 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): $ 11,690 par
OPERATION RESULTS
Operation Date: March 26, 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): $ 7,090 par
Total Amt Submitted (million): $ 9,919 par
OPERATION RESULTS
Operation Date: March 26, 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): $ 3,120 par
Total Amt Submitted (million): $ 4,798 par
OPERATION RESULTS
Operation Date: March 26, 2020
Operation: Purchases
Operation Type: TBA
Auction Method: Multiple Price
Release Time: 09:15 AM
Close Time: 09:45 AM
Settlement Date: March 31, 2020 (March Class A)
Total Amt Accepted (million): $ 11,245 par
Total Amt Submitted (million): $ 14,181 par
