Federal Reserve Weekly SOMA Update
The Fed’s position is dovish as it relates to the Treasury market, but continues to tighten on the mortgage side after it inflated the largest housing bubble in U.S. history. I smell a big ease coming. The U.S. fiscal debt position of $37 Trillion and counting demands lower short-term rates given that Washington D.C. lacks fiscal discipline on both sides of the aisle. Easing won’t help the Dollar, but it may help support equities in this credit-funded economy of ours.
Treasuries: The Fed’s Treasury position increased by $75 million for the week-ended August 27th. The Fed reduced its Treasury position by $5.8 billion on a rolling 4-week basis.
Agencies: The Fed’s Government Agency position decreased by $13.9 billion for the week-ended August 27th. The Fed’s Government Agency holdings decreased by $17.8 billion on a rolling 4-week basis.
The Fed’s balance sheet holdings: https://www.newyorkfed.org/markets/soma-holdings
Excel file: Our Excel file detailing the Fed’s holdings of Treasury and Agency securities over time: HERE.
