First of all apologies for my poor spelling.A lot of the POMO...

First of all apologies for my poor spelling.

A lot of the POMO (QE1,QE2) money was absorbed by the treasury department. Only a fraction actually made it onto the street (still a large sum though). 9 days ago all changed. Now the floodgate is open as the Treasury Department is unwinding the program.

So the previous post that suggested a turn day of end of march might be about right as there are 7 weeks left of massive liquidity injections.

There are two possible events that I will be watching though. Either the FED suspends or scales back QE2 or congress raises the debt ceiling. Especially the debt ceiling one will be fun to watch as this will allow the Treasury department to reintroduce SFP. By doing so it will absorb liquidity from the markets.