- As Liquidity Evaporates, Fed’s Third Bill POMO Is 5.5 Oversubscribed, Most Yet
by Tyler Durden, https://www.zerohedge.com/
Earlier this morning, when discussing today’s oversubscribed term repo and latest funding squeeze, we previewed today’s T-Bill POMO saying, “and now we await today’s T-Bill Pomo result for the final proof of funding deterioration, as we expect today’s operation will be the most oversubscribed yet, confirming that dealers are scrambling to convert their “safe” assets into dollars as fast as possible.”
Less than two hours, that’s precisely what happened, when the Fed announced that in its third $7.5 Billion Treasury Bill POMO, the Fed received a whopping $41.472 billion in “liquidity” requests, i.e. Dealers submitted $41.5BN in bids for the maximum $7.5BN in Fed “Reserve Management” (note: not QE) purchases.