Fed Keeps Monetizing the Debt – 16-Day Bill Treasury Auction Results


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The Treasury said that it was way oversubscribed. No shit, Sherlock! Since Friday the Fed has pumped $18.6 billion in permanent money into Primary Dealer accounts via POMO outright purchases of Treasuries. Then yesterday and today it rolled about $100 billion in TOMO repos to make sure that money stays in the banking system.

Bottom line: The Fed has been monetizing approximately 60% of the US Government’s budget defecation. That means that the dealers, banks, investors, and the rest of the world need to absorb only 40%. That ratio seems to be enough for the central bank to win the battle to keep the stock and bond market asset bubbles inflated.

Whether it’s a strategy that will win the “war” remains to be seen.

What a disgusting mess.

Term and Type: 16-Day Bill
CMB: Yes
High Rate: 1.540%
Investment Rate: 1.567%
Price: $99.931556
Allotted at High: 52.15%
Total Tendered: $54,450,259,000
Total Accepted: $15,000,034,000
Auction Date: 11/20/2019
Issue Date: 11/26/2019
Maturity Date: 12/12/2019

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