Full Japan

And we STILL have 5 more weeks of this Fed buying all of the net issuance... STILL... this is just like last summer under "debt ceiling!" only no "extraordinary measures" available...  Fed is just buying...  IT... ALL...  5 more weeks... STILL!...

I had hoped Mike's "full Japan" would take a nice slooooow year or two to sell some UST puts every week and make a $bazillion ...  but looks like it may only take a month at this rate oh well... foiled again! ...

They could put the whole 4T into 10 year at current 0.7% it would get them 28B....  IOR at 1.1% on 1.8T of Reserves costs them about 20B leaving only 8B... its imo not enough for them...  probably going to have to cut the IOR liability again... maybe they can make the March meeting...

At least the IOR rate reduction helps support risk asset prices and equity prices seem to bottom or at least stabilize...

Treasury yields plummet to record lows as concern about the impact of the coronavirus spurs demand for havens https://t.co/x0UDoJqqwP pic.twitter.com/yWsAUBSsPk

— Bloomberg (@business) March 6, 2020