Just Another Ordinary Thursday in Summertime

The Federal Reserve Bank of New York bought $3.6 billion worth of Treasuries this morning, but the primary dealers seem to direct the proceeds back into Treasuries today as the stock market dives on the news of weekly unemployment claims reaching 500,000 for the first time in 9 months.

For today's Permanent Open Market Operation (POMO) results, click here.

Philadelphia Fed's Manufacturing Index "unexpectedly contracted" in August, the first contraction since July 2009. Economists were expecting expansion.

But not to worry. The nation is busy discussing a "Ground Zero mosque", and the president of the United States is off to his 6th vacation for the year, with the Martha's Vineyard airspace restricted until August 29. Things cannot be that bad, can they?

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Federal Reserve POMO Is Back!

and the stock market melts up, like old times.

The Federal Reserve Bank of New York conducted a Permanent Open Market Operation (POMO) to buy Treasuries to the tune of $2.5 billion, its first since October 2009.

From the NY Fed:

Operation Date: 08/17/2010
Operation Type: Outright Coupon Purchase
Release Time: 10:15 AM
Close Time: 11:00 AM
Settlement Date: 08/18/2010
Maturity/Call Date Range: 08/15/2014 - 07/31/2016

Total Par Amt Accepted (mlns) : $2,551
Total Par Amt Submitted (mlns) : $20,949

For detailed schedule, see my other blog. (And just don't short the stock market on those days...)

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June 19 New York Fed Open Market Operation

As part of permanent Open Market Operations (OMO), the New York Fed purchased the agency bonds today:

• Operation type: Outright Agency Coupon Purchase
• Total Par Amount Accepted: $4,789 million
• Total Par Amount Submitted: $7,983 million

(Oh how cute. Did you know that the New York Fed uses Twitter?)

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