You Must Understand the Implications of Pre-monetization of Debt

Steven Spielberg gave us Pre-Crime; Ben Bernanke gave us Pre-Monetization. Moments ago, as part of today’s concluded $1.464 billion market funding POMO operation, one of the issues purchased by the Fed was the 30 year Treasury identified as CUSIP 912810QZ4.

Why is this CUSIP interesting? Because at 1:00 pm tomorrow, the US Treasury will issue $13 billion in the form of a 29 year 11 month bond reopening. The CUSIP of the issue: 912810QZ4.

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