The Fed bought $72 billion in Treasuries and $41 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 stalled. At 3:50 PM the market was down 73 points, the Dow off 700. Is that shocking? Hell yeah. On Thursday the S&P was up 154. The Fed got about 1.4 points per billion for its newly printed cash. Today it got nothing. Zero. Zip. Zilch. Nada.
It’s incomprehensible. $113 billion and the dealers used every penny of it to either pay down debt, buy Treasuries, or just sit and pout because all their money is gone. No house in the Hamptons this summer!
Well fuckem. They deserve it. They have financial engineered the entire world into this graveyard that $113 billion a day can’t even dig us out of. The worst part of this is that we all pay for their sins in the end. Everybody but them. They get bailed out, and next year they’ll get bonuses again.
If you read this yesterday, I’m sorry, but this blows and it’s worth repeating.
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 was going to 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 did not expect the move to just immediately stall. The engine idled and burned fuel today. But the Fed will fill the tank again on Monday.
Meanwhile here’s the chart of Fed Panic QE versus Treasury supply and the market. This is from Tuesday’s Liquidity Trader report. I update this chart in real time for Liquidity Trader subscribers a couple times a week.
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 on what it means and how to position yourself as a result.
Here are the results of today’s operations.
Treasuries:
OPERATION – RESULTS
Operation Date: 03/27/2020
Operation Type: Outright Coupon Purchase
Release Time: 02:30 PM
Close Time: 02:50 PM
Settlement Date: 03/30/2020
Maturity/Call Date Range: 03/31/2020 – 06/15/2022
Total Par Amt Accepted (mlns) : $24,000
Total Par Amt Submitted (mlns) : $45,285
OPERATION – RESULTS
Operation Date: 03/27/2020
Operation Type: Outright Coupon Purchase
Release Time: 01:40 PM
Close Time: 02:00 PM
Settlement Date: 03/30/2020
Maturity/Call Date Range: 05/15/2040 – 02/15/2050
Total Par Amt Accepted (mlns) : $5,000
Total Par Amt Submitted (mlns) : $7,855
OPERATION – RESULTS
Operation Date: 03/27/2020
Operation Type: Outright TIPS Purchase
Release Time: 12:50 PM
Close Time: 01:10 PM
Settlement Date: 03/30/2020
Maturity/Call Date Range: 04/15/2021 – 07/15/2027
Total Par Amt Accepted (mlns) : $3,500
Total Par Amt Submitted (mlns) : $7,881
OPERATION – RESULTS
Operation Date: 03/27/2020
Operation Type: Outright Coupon Purchase
Release Time: 12:00 PM
Close Time: 12:20 PM
Settlement Date: 03/30/2020
Maturity/Call Date Range: 06/30/2022 – 08/31/2024
Total Par Amt Accepted (mlns) : $17,000
Total Par Amt Submitted (mlns) : $32,453
OPERATION – RESULTS
Operation Date: 03/27/2020
Operation Type: Outright Coupon Purchase
Release Time: 11:00 AM
Close Time: 11:20 AM
Settlement Date: 03/30/2020
Maturity/Call Date Range: 05/15/2040 – 02/15/2050
Total Par Amt Accepted (mlns) : $5,000
Total Par Amt Submitted (mlns) : $8,598
OPERATION – RESULTS
Operation Date: 03/27/2020
Operation Type: Outright Coupon Purchase
Release Time: 10:20 AM
Close Time: 10:40 AM
Settlement Date: 03/30/2020
Maturity/Call Date Range: 09/30/2024 – 02/28/2027
Total Par Amt Accepted (mlns) : $11,000
Total Par Amt Submitted (mlns) : $22,475
OPERATION – RESULTS
Operation Date: 03/27/2020
Operation Type: Outright Coupon Purchase
Release Time: 09:30 AM
Close Time: 09:50 AM
Settlement Date: 03/30/2020
Maturity/Call Date Range: 03/31/2027 – 02/15/2040
Total Par Amt Accepted (mlns) : $6,000
Total Par Amt Submitted (mlns) : $15,863
MBS:OPERATION RESULTS
OPERATION RESULTS
Operation Date: March 27, 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): $ 6,922 par
Total Amt Submitted (million): $ 10,009 par
OPERATION RESULTS
Operation Date: March 27, 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): $ 10,510 par
OPERATION RESULTS
Operation Date: March 27, 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): $ 6,366 par
Total Amt Submitted (million): $ 8,060 par
OPERATION RESULTS
Operation Date: March 27, 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): $ 2,105 par
Total Amt Submitted (million): $ 2,899 par
OPERATION RESULTS
Operation Date: March 27, 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): $ 17,549 par
Total Amt Submitted (million): $ 20,473 par
