On September 30, $19 billion in treasuries will mature, but the Fed is scheduled to reduce $24 billion this month and because of a slower pace in July and August, it actually should reduce by $27 billion. Either $5 to $7 billion in treasuries will be sold next week or there's going to be a monster reduction in the final week of September. All together, the Fed has $34 billion left this month.Since only $19 billion will mature (rolling off on October 1), the Fed will start October $5 (and really $8 billion) behind schedule on UST roll offs.
The S&P 500 Index declined 2 points in the week ended Wednesday. If the pattern holds, the stock market will decline sometime this week and will likely finish down for the week. The Chinese yuan is still tracking lower with the Fed's balance sheet.
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