Tag: quantitative tightening

The Fed’s Balance Sheet Reduction (QT) Update

The Fed’s Balance Sheet Reduction (QT) Update

The Fed significantly trimmed its Treasury holdings during the week-ended January 18th while its Agency security holdings are essentially unchanged over the same period. The Fed has treated the U.S. housing market with kid gloves over the past month, certainly so since January 1st as its Agency security position is only $1.5 billion lower month-to-date. … Continue reading The Fed’s Balance Sheet Reduction (QT) Update

The Fed’s Balance Sheet Reduction (QT) Update

The Fed’s Balance Sheet Reduction (QT) Update

The Fed reduced its Treasury holdings by $43.2 billion in the week-ended January 4th. The Fed's Agency security holdings were unchanged. The Fed continues to shrink the money supply. Therefore, one should expect Treasury yields to move higher along the yield curve so long as the Fed continues to shrink the supply of money. The … Continue reading The Fed’s Balance Sheet Reduction (QT) Update

The Fed’s Balance Sheet Reduction (QT) Update

The Fed’s Balance Sheet Reduction (QT) Update

Total Treasury and Agency security holdings were reduced by $18.6 billion for the week-ended December 21st 2022. Fed Balance Sheet – Treasuries: The Fed’s Treasury security holdings were $13.2 billion lower over the last week and $35.9 billion lower on a rolling 4-week total basis. Fed Balance Sheet – Agencies: The Fed’s Government Agency security holdings were … Continue reading The Fed’s Balance Sheet Reduction (QT) Update

The Fed’s Balance Sheet Reduction (QT) Update

The Fed’s Balance Sheet Reduction (QT) Update

There was essentially no movement on the Fed’s Balance Sheet this week with only very minor changes. Total Treasury and Agency security holdings were reduced by $1.3 billion for the week-ended December 14th 2022. Fed Balance Sheet – Treasuries: The Fed’s Treasury security holdings were $1.2 billion lower over the last week and $22.7 billion lower … Continue reading The Fed’s Balance Sheet Reduction (QT) Update

The Fed’s Balance Sheet Reduction (QT) Update

The Fed’s Balance Sheet Reduction (QT) Update

There was essentially no movement on the Fed's Balance Sheet this week with only very minor changes. Total Treasury and Agency security holdings were reduced by $1.9 billion for the week-ended December 7th 2022. Fed Balance Sheet – Treasuries: The Fed’s Treasury security holdings were $1.9 billion lower over the last week and $61.9 billion lower … Continue reading The Fed’s Balance Sheet Reduction (QT) Update

The Fed’s Balance Sheet Reduction (QT) Update

The Fed’s Balance Sheet Reduction (QT) Update

The Fed reduced its Treasury and Government Agency security holdings by $32.9 billion over the week ended November 30th. The Fed has reduced its balance sheet holdings by $79.7 billion over the last 4 weeks. Fed Balance Sheet – Treasuries: The Fed’s Treasury security holdings were $19.6 billion lower over the last week and $60.0 … Continue reading The Fed’s Balance Sheet Reduction (QT) Update

The Fed’s Balance Sheet Reduction (QT) Update

The Fed’s Balance Sheet Reduction (QT) Update

The Fed reduced its Treasury and Government Agency security holdings by $4.8 billion over the week-ended November 23rd - essentially no change. The Fed has reduced its balance sheet holdings by $80.7 billion over the last 4 weeks as it modestly tightens monetary policy by shrinking the money supply (QT) and raising its Fed Funds … Continue reading The Fed’s Balance Sheet Reduction (QT) Update

The Fed’s Balance Sheet Reduction (QT) Update

The Fed’s Balance Sheet Reduction (QT) Update

The Fed reduced its Treasury and Government Agency security holdings by $42.1 billion over the week-ended November 16th as it allows balance sheet holdings to mature. The Fed has reduced its balance sheet holdings by $99.2 billion over the last 4 weeks as it tightens monetary policy by shrinking the money supply (QT) and raising … Continue reading The Fed’s Balance Sheet Reduction (QT) Update

The Fed’s Balance Sheet Reduction (QT) Update

The Fed’s Balance Sheet Reduction (QT) Update

The Fed’s balance sheet modestly expanded during the week ended November 9th - which explains why Treasury yields were flat to down along the yield curve over the same period. The Fed’s Treasury and Agency security holdings increased by a combined total of approximately $26 million over the past week ($25 million Treasury holdings increase … Continue reading The Fed’s Balance Sheet Reduction (QT) Update

The Fed’s Balance Sheet Reduction (QT) Update

The Fed’s Balance Sheet Reduction (QT) Update

The Fed’s balance sheet runoff reduced the Fed’s Treasury and Agency security holdings by a combined total of approximately $33.8 billion over the past week (week ended November 2nd), and a reduction of approximately $78.5 billion on a rolling 4-week total basis. The Fed reduced its balance sheet by $243.9 billion since QT began in … Continue reading The Fed’s Balance Sheet Reduction (QT) Update