Fed Balance Sheet Grows By $4 Billion

The Fed's balance sheet increased by $3.96 billion last week. All of it was MBS as treasuries declined $0.016 billion.

Yesterday, November 15, $34.3 billion in treasuries matured. The Fed needs to reduce by $30 billion this month and $44 billion if it wants to make up for missing its target in October. The Fed needs to reduce $56.1 billion in the second half of November because it increased the balance sheet the past two weeks. If it plays catch-up, it would reduce by $72 billion this month (I don't expect it to). On November 30, another $24 billion in treasuries mature.

The Chinese yuan continues to track the Fed's balance sheet.