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New POMO Schedule: Fed To Buy $9BN Each Day In Treasuries And MBS

POMO Schedule
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EDITOR NOTE: Below is the Fed’s schedule of permanent open market operations, also referred to as POMO. It appears that the Fed will be purchasing $4.5 billion in Treasuries and around $4.6 billion on mortgage-backed securities (MBS) on a daily basis for the remainder of the month. Since the Fed restarted QE in March, it had purchased  $2.82 trillion in Treasuries and MBS in the open market. This can boost the economy in the short term. Over time, however (and as you know), this will only deteriorate the dollar, weakening its global status as a reserve currency and reducing your purchasing power and wealth.

Now that the Fed's release of POMO is more of a periodic affair than every Friday, moments ago the NY Fed published its latest POMO schedule for both Treasurys and MBS for the next two weeks, covering the period July 14 - July 27.

In line with the recent Fed disclosure that the central bank will purchase about $80 billion in Treasurys monthly, the latest schedule shows an average daily purchase of about $4.5 billion, or $40.2 billion spread over 9 days; for MBS the average daily is nearly identical, at $4.6 billion daily, or $46BN spread over 10 days.

Here is the latest summary of Treasury POMOS. Of note: the biggest POMOs will take place on July 14 and July 24, when the Fed will monetize $12.825BN and $8.825BN worth of US debt.

The Agency MBS can be found at the following link.

The visual summary of all TSY/MBS POMO since the start of QE Unlimited on March 13 is shown below. Since then, a total of $2.82 trillion in TSY and MBS have been purchased by the Fed in the open market.

Originally posted on ZeroHedge

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