Temporary Open Market Operations for March29, 2011

Discussion in 'Financial Futures' started by ASusilovic, Mar 29, 2011.

  1. 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.


    Hum..The largest operation since 2009, draining $ 2.2 billion in liquidity? Are uncle BEN and FEDsters colleagues FINALLY beginning to telegraph to the market major changes in interest rate policy?

    In this case, I would need to go long Japanese YEN crosses across the board. "Carry trade" here we come...

  2. the1


    Interest rates will be going up sooner rather than later. Inflation is kicking in. Have you been to the grocery store lately? The price of coffee has just about doubled. If the Fed doesn't act foreign countries are not going to be happy because the price of food is going to rise world-wide. There is a tremendous amount of pressure on the Fed from foreign nations.
  3. Pressure from foreign nations? I think the pressure comes from that grand, old party, too - and rightfully so! :=)
  4. The repos are just replacing the SFP bills, so I wouldn't get too excited just yet.
  5. The Japanese crosses are already exciting. EUR/JPY making new multi month highs as I am writing.
  6. Well, we all know what to do then? Sell it!