POMO Squeeze – Bonds Rally

The Fed really got its money worth today, buying $2 BN of bonds with maturities in the range of  08/15/2028 – 11/15/2040.    Long-term interest rates fell 10-20 bps.  Just another example of how bonds behave when the parents are home.  We wrote about the potential for POMO squeezes earlier this week.

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