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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.
FED
As we detailed in our latest Fed Balance Sheet Tracker out today (PDF here), the size of the Fed's balance sheet continues to recede from banking sector-assistance related highs set earlier this year, with the $8.1T of assets as of Sept 6th representing the lowest level since July 2021 (and down from $8.8T in March and, prior to that, the all-time high $9.0T in April 2022).
- The SOMA portfolio is at its smallest level since June 2021 at $7.379T (down just over $1T since the peak in mid-2022 when QT began).
- Another $18B net in Treasuries rolled off last week, making $61B in the past month, with $19B in MBS and $1B in Bills holdings contracting over the past month.
- Part of the drawdown in assets is attributable to the decline in emergency liquidity and lending facilities.
- With temporary loans to the FDIC declining another $0.6B in the past week and $11.6B in the past month to $134B, and discount window usage pulling back $0.9B last week to $2.1B, it's really only the Bank Term Funding Program (BTFP) that's applying upside impetus.
- But BTFP is only rising at a very slow pace (+$1.0T in the past month to $107.9B), in fact even more slowly in the past month than the legacy Pandemic 13-3 Programs have contracted (-1.2B to $31.9B).
Source: Federal Reserve
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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