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The POMO front running traders were disappointed this morning as the Fed only bought 10% of what was offered from the primary dealers:

Operation Date: 10/22/2010

Operation Type: Outright Coupon Purchase

Release Time: 10:15 AM

Close Time: 11:00 AM

Settlement Date: 10/25/2010

Maturity/Call Date Range: 04/15/2013 - 09/30/2014

Total Par Amt Accepted (mlns) : $2,490

Total Par Amt Submitted (mlns) : $24,808

My Take:

As a result, the banks only got $2.49 billion in gambling money from the Fed. Without the NY Fed's "juice" there are few bids for stocks or anything else.

It's a sad day in this country when our government decides what direction all asset classes trade instead of the free markets.

I don't see why anyone would want to be involved in such a cesspool. Expect a giant nothingburger today, and I expect that we close flat to lower by the end of the session barring any news.

After a wild week I think you would have more fun doing this today:

Source: POMO Disappoints; Expect Today's Market to Be a Nothingburger