Federal Reserve Weekly SOMA Update

The Fed has essentially ended QT on the Treasury front, but continues to bleed its balance sheet of the mortgage-backed excess of April 2020-April 2022.

• Treasuries: For the 3rd week in the past four, the Fed has done nothing with respect to its Treasury position. The one week the Fed did take action, it grew its Treasury position. The Fed’s Treasury position increased by $641 million on a rolling 4-week basis.

• Agencies: The Fed’s Government Agency security holdings decreased by $14.1 billion for the week-ended July 30th as the Fed works to slowly unwind the housing bubble it created from April 2020 through April 2022 via some $30 billion per month in mortgage-backed purchases. 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

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

Source: TEK2day; Federal Reserve holdings