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Balance Sheet Unwind

Fed Adds $705 Million Agency MBS With Un-Unwind

The Federal Reserve's balance sheet unwind was MIA again this week as agency MBS increased with latest System Open Market Account Account Holdings report. SOMA January 24 holdings reflected a magical $705 million INCREASE in agency mortgage-backed securities. This is rather strange behavior indeed for what was advertised as a balance sheet "unwind". It's looking more like the un-unwind, at least for the past two weeks. Much like the crony capitalist elite dining in Davos, the fine purveyors of bogus economic theory inhabiting the halls of the Marriner Eccles building are probably a tad bit [...]

Fed Balance Sheet Unwind Proceeding At Snails Pace

The balance sheet unwind for the Federal Reserve is proceeding at a snails pace. After a rather large jump in the securities holdings last week, we should have seen a resumption in the balance sheet shrinkage. Interestingly the Fed's holdings of Treasury and mortgage securities only fell by $4.8 billion this past week. A look at the weekly System Open Market Account Holdings shows there is a lot of work to do in the last week of the year if the Fed is going to stick to it's stated unwind schedule. While the Fed has [...]

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