Fed Discount Window Weekly Update
This week’s Primary Credit activity at the Fed’s Discount Window:
This week’s primary credit balance was $2.2 billion, down from $6.9 billion a week ago.
The 10-Year Treasury yield declined from 4.105% for the week-ended July 31st to 3.968% for the week-ended Wednesday August 7th with a low of 3.783% on August 5th. Lower yields ease liquidity conditions for banks. Our guess is that some of the smaller banks did not have to tap the Fed’s discount window as a result of easing conditions, thus the steep decline to $2.2 billion.
