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As part of today's $7 Billion Treasury OMO by the Fed, $5.9 billion of recently auctioned off 5 Years were purchased.

Note the highlighted CUSIPs:

912828KY5 is the 5 Year auctioned off on June 24, $40 billion offered, $11 billion of which was accepted by primary dealers. And poof - now they hold just a little over 50% of this issue (and we have not checked how much may have been repurchased in prior OMOs).

912828KV1 is the 5 Year auctioned off on May 27, $25 billion offered, $18.5 billion of which went to primary dealers.

It seems the Fed today is particularly concerned with thee 5 year point.

So, yes, we will have QE phasing out... But not yet.... not yet!

In the meantime -auction closed at 11am... And here is the market reaction:

Source: The Fed's $5.9 Billion Purchase