a post on the Fed from another thread...these guys are UFB:
Fed pulling out all the stops today
Posted By: Sleeping Bear
Date: Thursday, 12/9/99, at 10:00 a.m.
In Response To: Alert: Fed does coupon pass (Tiresias)
I posted last night that all major indexes were sitting on critical support, and if they broke down from here things could get ugly very quickly. Tanabear made similar comments about today being pivotal. It wasn't rocket science that I posted. Most technical traders would be looking at the same thing. So what do we get today:
1) Ramp job in the spoos before the open. There was no rational reason for them to be taking off that high early this morning before any news was out.
2) Then the Fed announces a 40 day repo before the open.
Thursday December 9, 9:16 am Eastern Time
Fed's 40-day fixed system RPs totaled $6.205 billion
NEW YORK, Dec 9 (Reuters) - The Federal Reserve said on Thursday that its operation of 40-day fixed-system repurchase agreements added $6.205 billion to the banking system.
3) That wasn't enough. They had to do an overnight too.
Thursday December 9, 10:13 am Eastern Time
Fed's overnight repos totaled $2.500 billion
NEW YORK, Dec 9 (Reuters) - The Federal Reserve said on Thursday that its operation of overnight system repurchase agreements added $2.500 billion to the banking system. The Fed said the collateral for the operation was all in Treasuries, with a stop out of 5.54 percent.
4) When I saw that, I got cynical, and thought "Hell, they might as well throw in a coupon pass or two." Bingo!
Thursday December 9, 10:36 am Eastern Time
Fed buys coupons from Nov 2002 to Nov 2004
NEW YORK, Dec 9 (Reuters) - The Federal Reserve said it added permanent reserves to the banking system on Thursday by buying U.S. Treasury securities dated from November 30, 2002 to November 15, 2004, for delivery on Friday.
Do they know something about tomorrow's PPI number? Or did they just decide it was time to give the junkies another fix?
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