Background on today’s Fed operation
By Nick Kalivas - Fri 22 Feb 2013 08:53:57 CT
Related Keywords: Interest Rates
The Fed is buying paper in the '36 to '43 area of the curve today as part of its QE operation.  The amount of paper submitted has fallen in recent operations, and suggests investors are less willing to part with their treasury holdings.  The last two operations saw $3.86 bln and $4.19 bln submitted compared to an average of $5.59 bln the five prior.  The last five operations have seen an average accepted to submitted ratio of 31.52%.  Signs of slower consumer spending is helping to support the market.  Recent profit guidance from Nordstrom, Darden, and Ambercrombie highlight the adverse impact of high gasoline prices and the expiration of the payroll tax holiday on consumer spending.    The March Ultra T-bond contract continues to range between about 154-12 and 157-21 -- frustrating both bulls and bears.


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