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USDCAD TECHS

Stronger In a Range

AUDUSD TECHS

Weaker In A Range

US TSYS SUMMARY

Ending The Week On A Soft Note

EURJPY TECHS

Bearish Risk Growing

USDJPY TECHS

Stronger, But Still Vulnerable

US

SP500 PE Ratio vs. CPI Inflation

Fed Balance Sheet Tracker - Jun 11, 2021

Apart from constant speculation over the timing of a potential Fed asset purchase taper, there are a few other items on the monetary policy agenda that bear watching, starting at the June FOMC and through the summer.

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MNI View: Steady Funds Rate May Preclude Fed Tweaks

  • The Fed's balance sheet has risen to a record $8trn, with Treasury (nominal and TIPS) and MBS holdings up by $125B in the week to Jun 9. This is roughly as expected given the Fed's $120B monthly asset purchase pace.
  • Apart from constant speculation over the timing of a potential Fed asset purchase taper, there are a few other items on the monetary policy agenda that bear watching, starting at the June FOMC and through the summer.
  • These include the potential for short-term tweaks to administered rates; the rise in overnight reverse repo usage; shifting policy on short-end holdings; and possible tapering of MBS before Tsys.

PLEASE USE THE FOLLOWING LINK TO ACCESS FULL PDF ANALYSIS:

FedBalanceSheetJun112021-2.pdf