Fed Reduced Balance Sheet $33.3 B, 0.8pc Last Week

The Fed reduced its balance sheet $33.3 billion last week, $23.8 billion was treasuries. It was the biggest single-week reduction to date, worth 0.80 percent of the Fed's balance sheet. The Fed is $16 billion off pace after October didn't have enough treasuries. In November, $59.2 billion of treasuries mature. If the Fed wants it can play catch-up and reduce $66 billion. Otherwise, it should reduce $50 billion as expected. November 15 and 30 both have substantial treasury maturities so there won't be a full month of reduction stuffed into one week.

The S&P 500 Index gained 12 points on the week.