- QE4 Officially Begins: Fed’s First T-Bill Purchase Is 4x Oversubscribed Amid Massive Liquidity Demand
by Tyler Durden, https://www.zerohedge.com/
QE4 has officially arrived.
As previewed yesterday, moments ago the Fed concluded the first POMO – as in Permanent Open Market Operation, not to be confused with Temporary – from previously announced T-Bill purchases ($60 billion per month, $7.5 billion per operation), and what it showed is a confirmation of message sent by today’s repo operation: there is an unprecedented demand for liquidity.
Specifically, the Fed purchased $7.501 billion in Treasury Bills out of $32.569 billion in T-Bills submitted. In other words, the operation was 4.3x oversubscribed, and when combined with the oversubscribed repo operation announced earlier today, confirms that there is a dramatic need for liquidity among the Primary Dealer community.