The Federal Reserve did as expected and rolled $19 billion in U.S. treasuries off its balance sheet last week (ended Wednesday). There was a small increase in MBS. The Fed is still running behind on its treasuries (by my count) and now has $38 billion in treasuries to reduce in October, or $30 billion in this month alone. Only $22 billion in treasuries mature on October 31.
The S&P 500 Index gained 19.5 points on the week. QT didn't seem to have an impact. Emerging markets and CNY followed the Fed's balance sheet lower.
The Fed has to reduce $50 billion this month and will reduce $50 per month until it changes policy. Assuming the $22 billion in treasuries rolls off on October 31, that leaves another $28 billion ($8 billion USTs) across 3 weeks.
Easter Eggs (1 of 21): Hot Air
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FEEDPreface to all 21 parts: This is a special holiday weekend, because not
only does it contain Good Friday and Easter, but it also begins the Slope
of Ho...
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