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Fed Cuts Pace Of Treasury QE By 50% To "Only" $15 Billion Per Day, Yields Spike
From an initial $75 billion per day when the Fed announced the launch of Unlimited QE, the us central bank reduced its daily buying to $60 billion per day, then two weeks ago announced another 'taper' in its bond-buying program to $50 billion per day, which was followed by last week's reduction to 30 billion per day. Now, the Fed has slashed its buying by another 50%, to "only" $15BN per day. Having implicitly confirmed there is now a shortage of bonds - at least coupon bonds considering the $1.382 trillion flood in T-Bills and Cash Management Bills in the past two weeks to fund the stimulus package.
Additionally, the Fed will also taper its MBS buying from $15 billion to $10 billion in MBS per day next week:
Mon: $10.709b
Tue: $8.938b
Wed: $10.709b
Thur: $8.938b
Fri: $10.7019b
So, in aggregate, The Fed will buy a total of $125 billion of MBS/TSYs next week, still vastly more on a weekly basis than the largest QE programs monthly totals before this crisis, if well below the $625 billion in purchases conducted in the week starting March 23, when the financial system was once again on the verge of collapse and only the Fed could bail it out… just don't call it a bail out because nobody could have possibly anticipated an economic shock especially after banks repurchased trillions in their own stock in the past decade.
And for those curious, after the Fed mysteriously delayed the publication of its closely followed H.4.1 statement summarizing the size of its balance sheet on Thursday, the central bank updated the numbers this morning, which showed that as close of Aptil 15, the Fed's balance sheet was a record $6.368 trillion, up $285 billion on the week and up $2.4 trillion from a year ago.
https://www.zerohedge.com/markets/fed-cut-pace-treasury-buying-again-only-15-billion-day
https://www.marketwatch.com/investing/bond/tmubmusd10y
PAT838A west from Dobbins ARB that started from Ft. Worth NASJRB en
PAT008 C-560 ne from Austin Int'l with ground stop in Huntsville origin Harrisburg
PAT840A west from Dobbins ARB also started at Ft. Worth
VMV767 C-560 from Wichita, KS on final at Miramar-origin JBA earlier
CNV4541 US Navy Clipper C-40A north from Miramar with a circle of March AFB then north
when I put that in on monday another anon said it was routine in that area. Have seen several head from Tinker to that area too.