Abet Chichi2

[chichi2]

Over the Past several Months, the Fed_Mrkt_Operations has used "Reverse Repros" to support the Note and Bond market, this is what they say at their site:

"To implement monetary policy, short-term repurchase and reverse repurchase agreements are used to temporarily affect the size of the Federal Reserve System's portfolio and influence day-to-day trading in the federal funds market."

The Fed action is really that of Buying Notes or Bonds, usually their Own Offerings, this has the effect of raising the price of that particular offering. We see this as an effort to support that market, encouraging Lower Rates from the Supported Price.

Over these several months the Fed Mrkt Operations group has kept buying almost daily, about $20 to $25 Billion via the Reverse Repro activity. This in particularily important to watch if the Fed Stops doing this, increases this or makes any change to this pattern, like adding some other action.

Myself °¿° is posting this data for us now, and any other action the Fed is taking that he sees fit. Or he will post any other things he sees fit to post too..