Biggest QT Week Yet, $29.1 B Reduction, Only $12.5 B in Treasuries

The Fed reduced its balance sheet by $29.1 billion this past week. It was the biggest $QT week thus far, but only $12.5 B in Treasuries, less than I anticipated. The S&P 500 lost 39 points.

While the S&P 500 is relatively correlated on a weekly basis, it hasn't tracked the Fed balance sheet over the longer-term, though it looks like a headwind. The Chinese yuan has tracked more closely.