🚨Fed B/S Update🚨Danger, danger will robinhooders!

This week B/S shrunk -$74bn, largest reduction since May 2009 (when it declined by -$100bn). I knew there would be weeks like this! Main reason is a significant decline in usage of the FX swaplines. See interactive guide👇1/3 https://twitter.com/federalreserve/status/1273716190335164423
Repo usage also declined in a big way (basically cut a bit over half to $79bn). Luckily MBS purchases of $83bn hit otherwise the decline in the B/S would have been potentially a new record this week too. The other facilities barely change, we keep getting standard CCF growth. 2/3
Net, what we saw this week was what happened in '09 once liquidity programs began to rolloff resulting in a shrinking of the B/S until they got deep into QE1 buying. Lastly the TGA was topped up again and that plus the reduction in the B/S led to a -$120bn drop in e-reserves! 3/3
You can follow @bondstrategist.
Tip: mention @twtextapp on a Twitter thread with the keyword “unroll” to get a link to it.

Latest Threads Unrolled:
Those who think consciousness raising & movement building are disconnected, or even a distraction from electoral politics have not paid attention to the history of social change.In this thread, we
Read more
The 2020s will be known as the Remote Work decadeA few predictions of what is likely to emerge[ a thread ] Third Space: Office and Working from Home will
Read more
1/29: Have you ever had a concept explained to you that helps frame complex issues you’ve been wrestling with and opens your eyes to new possibilities? A concept that I
Read more
By continuing to use the site, you are consenting to the use of cookies as explained in our Cookie Policy to improve your experience.