On many occasions, and in many different forums, the Federal Reserve has expressed every intention of winding up its $1.25 trillion program for buying agency MBS by March 31.

The FMOC explained in its January 27th statement:

After looking at yesterday's 21 day Treasury auction, you have to wonder:


My Take:

As you can see above, despite a strong BTC, the number of indirect bidders in yesterday's auction was ZERO! Indirect bidders are mainly composed of the central banks of the world, while the primary dealers are made up of the banksters like Goldman Sachs (GS) and Morgan Stanley (MS).

BlackRock (BLK), one of the largest money managers in the world, and the owner and manager of the iShares ETF family, pointed out Monday (February 1) that:

The current weakness (with stocks down around 6.5%) is roughly in line with the 5% to 8% declines we saw periodically last year as stocks climbed 60% from their March 2009 lows through year-end. From our perspective, we think it is likely that while the current correction may not yet be over, neither is the cyclical bull market.