Historic Day: Fed To Buy A Record $107 Billion In Securities Today Alone As Fed Balance Sheet Explodes
- Historic Day: Fed To Buy A Record $107 Billion In Securities Today Alone As Fed Balance Sheet Explodes
by Tyler Durden, https://www.zerohedge.com/
Back in December we predicted that at the rate “Not QE” (RIP) was going, the Fed balance sheet would surpass it all time high by late April. It turns out that we were overly optimistic: with the Fed relaunching QE over the weekend as part of what is now global helicopter money, it announced plans to purchase $700BN in Treasury securities and expanding it to MBS earlier this week. However, that was not enough, and in the past week the Fed scrambled to stabilize the Treasury market buying TSYs feverishly hands over fist in addition to soaking up as much securities as Dealers had in its repo facilities, and as of this moment the Fed’s balance sheet has soared to a new all time high of $4.668 trillion.
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As a reminder, the Fed balance sheet was $3.7 trillion in Sep, just ahead of the repo crisis, meaning that in the last 6 months it has grown at a 50%+ pace. Putting the recent surge of purchases in context, here is what the Fed’s “Not QE” looked like in purchase terms since it was restarted in October, and what March will look like.
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