POMO Closes: $3.6 Billion In Debt Monetized, Morgan Stanley Predictive Prowess Still Spotless
Submitted by Tyler Durden on 08/19/2010 10:22 -0500

Today's POMO has closed, with the Fed monetizing $3.609 billion in debt, far more than previously expected, and much more than last auction's $2.5 billion (is Liberty 33 sweating in its reliquification attempts courtesy of today's nightmarish economic date). The hit rate was also worse than the previous one, coming in at 16.5%, with 12.2% previously (another way of saying this is that the submitted/accepted ratio was 6.07). And yet again, Morgan Stanley was spotless, with its 9 bond predictions all eligible for purchases, and in fact seeing 6 of the 9 proposed issues purchased by the Fed. In a basket which had 27 eligible CUSIPs, this is quite an impressive result

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