On October 13, the FOMC announced their POMO schedule for the next four weeks: nine sessions totaling an estimated $32B in treasury purchases. Three sessions remain:
Monday, November 1
Thursday, November 4
Monday, November 8
While we don't know the size of each POMO beforehand, the Fed does release historical data on their operations. So we know that the Fed has purchased slightly less than ~$18B in treasuries during the first six POMOs announced on October 13 (about ~$3B per). Which means these last 3 POMOs should be significantly larger than the first six, accounting for ~$14B total with a mean of ~$4.7B per POMO.
The Fed will announce their next POMO schedule on Wednesday, November 10.
Parker,
ReplyDeleteis it possible the market continues to push higher to the 2nd week of nov? with no near term pullback?
Jesse
Good info.
ReplyDeleteIt's a bit ironic (and surprising) that this may be the first POMO in a while where we close lower! Big boys using early morning highs for distribution in anticipation of the market tanking after Fedspeak on Wednesday?