Trial now



Coming up in the Asia-Pac session on Friday:


Coming up in the Asia-Pac session on Friday:


Toeing The Line on Accelerated Taper


Trend Direction Remains Down


Fed balance sheet growth took a breather in the week to Wednesday Jun 30, ending the quarter with a weekly $23.4B drop in assets. This was mostly due to net declines in MBS, offset by higher nominal/TIPS bond holdings, and 13-3 and liquidity facilities.

Source: Fed, MNI

  • While 13-3 facilities rose by $3.5B in size (entirely on a rise in the Paycheck Protection Program Liquidity Facility), the Fed closed the books on the Commercial Paper Funding Facility in the last week, by returning the Treasury's equity capital ($8.5B).
  • The facility had been unused since summer 2020 so its official closure will have little impact; likewise it will have little impact on the balance sheet, as the cash was ultimately transferred back and forth between the Fed and the Treasury's account at the Fed.

Assets Total Nominal Tsys TIPS Bills MBS+Agencies 13-3 Facilities Liquidity Facilities Other*
Last Week's Net Change (USDbn) - 23.4 15.4 3.6 - - 34.5 3.5 4.5
4-Week Net Change (USD bn) 142.8 50.4 10.0 - 75.4 5.9 6.3
Total Holdings (USD bn) 8,078.5 4,449.3 352.9 326.0 2,322.0 147.1 91.6 389.6
MNI London Bureau | +44 203-865-3807 |
MNI London Bureau | +44 203-865-3807 |