Federal Reserve Weekly SOMA Update

The Fed held Treasuries flat and culled an $18 billion tranche of mortgages from its balance sheet. If you look at our Excel spreadsheet below (premium content), you will see that the Fed is maintaining the tightening pace on the mortgage side that it held in 2023 and 2024. The Fed is trying to slowly deflate the housing bubble it would seem. Better to have tightened more sharply and to a greater degree.

• Treasuries: The Fed’s Treasury holdings increased by $50 million for the week-ended June 25th. The Fed’s Treasury holdings decreased by $2.3 billion on a rolling 4-week basis.

• Agencies: The Fed’s Government Agency security holdings decreased by $17.7 billion for the week-ended June 25th. The Fed’s Government Agency holdings decreased by $17.7 billion on a rolling 4-week basis.

• The Fed’s balance sheet holdings: https://www.newyorkfed.org/markets/soma-holdings

• Our Excel spreadsheet tracks the Fed’s SOMA activity since 2022. It may be accessed below the paywall.

Source: TEK2day; Federal Reserve data