-
Policy
Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM POLICY: -
EM Policy
EM Policy
Exclusive interviews with leading policymakers that convey the true policy message that impacts markets.
LATEST FROM EM POLICY: -
G10 Markets
G10 Markets
Real-time insight on key fixed income and fx markets.
Launch MNI PodcastsFixed IncomeFI Markets AnalysisCentral Bank PreviewsFI PiFixed Income Technical AnalysisUS$ Credit Supply PipelineGilt Week AheadGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance CalendarsEZ/UK Bond Auction CalendarEZ/UK T-bill Auction CalendarUS Treasury Auction CalendarPolitical RiskMNI Political Risk AnalysisMNI Political Risk - US Daily BriefMNI Political Risk - The week AheadElection Previews -
Emerging Markets
Emerging Markets
Real-time insight of emerging markets in CEMEA, Asia and LatAm region
-
Commodities
-
Credit
Credit
Real time insight of credit markets
-
Data
-
Global Macro
Global Macro
Actionable insight on monetary policy, balance sheet and inflation with focus on global issuance. Analysis on key political risk impacting the global markets.
Global MacroDM Central Bank PreviewsDM Central Bank ReviewsEM Central Bank PreviewsEM Central Bank ReviewsBalance Sheet AnalysisData AnalysisEurozone DataUK DataUS DataAPAC DataInflation InsightEmployment InsightGlobal IssuanceEurozoneUKUSDeep DiveGlobal Issuance Calendars EZ/UK Bond Auction Calendar EZ/UK T-bill Auction Calendar US Treasury Auction Calendar Global Macro Weekly -
About Us
To read the full story
Sign up now for free trial access to this content.
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.
Real-time Actionable Insight
Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.
Free AccessMNI POLICY: Fed Balance Sheet +$54B to $7.06T; MBS Tops $2T
The Fed's balance sheet jumped USD54 billion over the past week to USD7.06 trillion on MBS and Treasuries purchases, data released Thursday showed.
The Fed's total portfolio is up 67% since early March at 36% of U.S. GDP. Total assets peaked at a record USD7.17 trillion in early June but had since remained steady near USD7 trillion.The Fed's holdings this week were driven by purchases of mortgage-backed securities, rising USD55 billion to a record at just over USD2 trillion.
Treasuries increased USD13 billion to USD4.4 trillion, a new record high. Fed Chair Jerome Powell on Wednesday affirmed plans to continue QE to support an economy reeling from Covid-19, with buys of at least USD80 billion per month of Treasuries and at least USD40 billion of MBS.
"There are various ways and margins there we can adjust our tools going forward and we'll continue to monitor developments and we're prepared to adjust our plans as appropriate," Powell said.
The central bank's balance sheet growth was partially offset this week as holdings of currency swaps with foreign central banks continued to roll off its portfolio by USD20 billion to USD52 billion.
FRICTION WITH CONGRESS
Other facilities aimed at supporting markets have remained steady after early surges in March when the Fed announced programs and cut interest rates to near-zero.
The Main Street Lending Program was up USD65 million to USD1.4 billion, and the corporate bond purchases continued at USD96 million over the previous week reaching a total of USD12.9 billion.
The Fed's Municipal Liquidity Facility remained steady at USD1.6 billion and was again under criticism from lawmakers this week from both sides of the political aisle. While Democrats criticized the program for not taking on greater risk, Senator Pat Toomey, a Republican of Pennsylvania and a member of the Congressional Oversight Commission, recommended Thursday that the Fed and the Treasury shut down the muni program as market conditions have improved and states and localities have begun issuing debt again.
To read the full story
Sign up now for free trial access to this content.
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.