The Fed’s Balance Sheet Reduction (QT) Update
The Fed modestly added to its T-Bill position this week. Get used to the Fed doing so as it will be a buyer of short-term Treasuries at auction to help strengthen Treasury auctions as Yellen & Co. look to finance the bloated U.S. Government.
Treasuries: The Fed’s Treasury security holdings increased by $100.0 million for the week-ended May 8th and declined by $57.5 billion on a rolling 4-week basis.
Agencies: The Fed’s Government Agency security holdings were unchanged for the week-ended May 8th and declined by $16.4 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: HERE.
