Here are the details on its purchases and holdings in July.
Repos are gone. Dollar liquidity swaps dropped further. SPVs fell to lowest since June 17. MBS dropped by $37 billion. Treasuries rose.
Repos zilch, gone. Dollar liquidity swaps on their way out. SPVs flat for five weeks, but composition is changing. Treasuries edged up by smallest amount all year. MBS rose.
Repos & dollar liquidity swaps on their way out. SPVs declined. Hardly bought any corporate bonds & ETFs. MBS flat. Treasuries ticked up.
Fed shifts to propping up consumption by businesses and governments, and away from propping up asset prices.
Here are the 84 companies whose bonds the Fed bought, and the 16 bond ETFs it now holds.
Fed leads in trimming its balance sheet; Now Bank of England governor publishes the reasoning for central banks to shed assets – before raising interest rates. A big shift!
I’m sharing this trade for your future entertainment so you can hail me as the obliterating moron that infamously shorted the greatest rally floating weightlessly ever higher above the worst economic and corporate crisis imaginable.
The Big Shift: Fed shifts to propping up consumption rather than asset prices.
Foreign holders, US banks, and US government funds all dumped. But two big players gorged on it – and one of them was the Fed.