In(som)nia: Fed Fails To Sell T-notes/T-bonds AGAIN! Balance Sheet Back To Trump Election Week

By Anthony B. Sanders

In(som)nia: Fed Fails To Sell T-notes/T-bonds AGAIN! Balance Sheet Back To Trump Election Week (All Agency MBS Sales)

Yawn! Another week goes by in December another week without The Federal Reserve of New York selling any of its Treasury Notes and Treasury Bonds held in SOMA (System Open Market Account).

SOMA holdings (aka, the assets on The Fed’s balance sheet) fell -$10.5 billion from the previous week.

SOMA122717.png

However, none of the sales were of Treasury Notes or Treasury Bonds. It was all agency MBS.

omatreasmbs.png

SOMA (balance sheet) holdings are back to election week 2016.

somatrump

I am getting insomnia waiting for The Fed to seriously start shrinking their balance sheet.

Meanwhile, both the 30Y-2Y and 10Y-2Y Treasury curves are back to October 2007 levels.

ustoct07

It is almost as if The Fed was … paranoid.

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