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bam
10-02-08, 04:47 AM
Can someone pls explain what it means when the TOMO goes negative? I don't remember seeing this go below zero before.
http://www.bullandbearwise.com/FOMOChart.asp

bart
10-02-08, 12:04 PM
Can someone pls explain what it means when the TOMO goes negative? I don't remember seeing this go below zero before.
http://www.bullandbearwise.com/FOMOChart.asp

These days, it means very little in my opinion primarily due to the extreme levels in the various new Fed "facilities" like TAF, TSLF and SFP - all of which are broadly in the area of temporary OMOs.

Plus, at the current level of about $55 billion they're close to the TOMO average level since 1/2007 of $56 billion, and way ahead of the average TOMO balance of $33 billion since 2000.

In specific, lately I believe that the Fed thinks it can make better use of the TOMO money in other operations & facilities.