From IFR News…The curve is expected to hold to a steeper slope given the cautious state of Fed policy along with their extraordinary liquidity injections via overnight and term RP’s. As well, today starts the Fed’s Permanent Open Market Operations (POMO) where they will be expanding their balance sheet to the tune of $300 bn or so over the next several months via the large-scale purchase of T-bills. Of this $60 bn T-bills will be bought over the next four weeks in twice weekly installments of roughly $7.5 bn each. Again, today will be the first go where at 11:00 am the Street (and their customers) will be offering in T-bills for the Fed’s consideration. The market will be most interested in the prices that the Fed will be paying.