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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
MNI Fed Balance Sheet Tracker - Sep 22, 2023
MNI Fed Balance Sheet Tracker - Sep 22, 2023
EXECUTIVE SUMMARY:
- While the level of bank reserves dropped sharply in the past week to the lowest since late April, they are still slightly up on the year despite the headwinds presented by Fed quantitative tightening and the recent TGA rebuild.
- Reserves will continue draining as the "other credit extensions" continue to unwind (still $85B to go from a $228B peak) and ongoing QT. But they still appear to be ample, with few signs otherwise so far.
- SOMA’s size has contracted by $1.045T since QT started in June 2022, though as that’s been unevenly and disproportionately distributed, with Treasuries doing most of the rolling off as MBS prepayments remain moribund.
For full PDF analysis:
FedBalanceSheet-Sep22-2023.pdf
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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