Saturday, August 22, 2009

Duh

A good number of the Permanent Open Market Operations are on Mondays.

Bank failures are done on Fridays after market close.

Duh. It's only insightful if you've previously looked at things in isolation, and is entirely obvious in hindsight.

Less obviously, the non-Monday operations would more likely be involved in supporting bond auctions. And the Monday operations would focus on dragging up the banking indexes besides the broader markets. There also may be some exploitable differentials - though I'm sure some quant math-nerds somewhere have already latched onto those.

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