Economic Charts

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Tuesday, October 5, 2010

POMO Update

Today was another POMO (Permanent Open Market Operations) purchasing day.  Today the Fed bought $5.19 Billion worth of Treasuries.

Operation 1 - RESULTS
Operation Date:   10/05/2010
Operation Type:   Outright Coupon Purchase
Release Time:   10:15 AM
Close Time:   11:00 AM
Settlement Date:   10/06/2010
Maturity/Call Date Range:   09/30/2016 - 08/15/2020

Total Par Amt Accepted (mlns) : $5,190
Total Par Amt Submitted (mlns) : $23,621

The two graphs below show the correlation between POMO and the DOW performance.  The picture for the S&P mapped over is very much the same.  It sure looks like the money in POMO had something to do with todays lift in the major indices.
Though it is said that the stock market rally was due to the Japanese Central Bank rate cut to between 0.0 and 0.1 percent, as well as a better than expected ISM number.  Though these may be the reasons, but POMO Purchases may had a little to dow with it as well (or will into the coming trading day).

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