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Federal Reserve Balance Sheet Update: Week Of October 13

Submitted by Tyler Durden on 10/14/2010 23:20 -0400

This week we have official confirmation of our speculation from last week, that the Fed is now the second largest UST holder institution after China, with $821.2 billion in Treasurys. And courtesy of yesterday's POMO schedule announcement, according to which the Fed will purchase $32 billion in UST through November 8, at which point it was have $853 billion, we now know that Brian Sack will be the biggest holder of US Treasurys in the world (surpassing China's $847 billion). Aside from this there
was little notable in the weekly balance sheet update: bank reserves
increased by $29 billion in the past week, as Primary Dealers added even more to
their purchasing capacity post the end of quarter window dressing (more in an upcoming update).

Summary balance sheet breakdown:

Securities
held outright: $2,052 billion, unchanged from the week prior.
- Total
  Treasury holdings increased
  from $819 billion to $821 billion, the reason for the increase being the continuing UST purchasing via QE Lite, soon to become QE2.
- MBS
  holdings were completely unchanged at 1.079 trillion. The treasury
  purchases in the week were a catch up from the $13 billion in prepays
  in the past week.
- Agency holdings declined by $2 billion to $152 billion.
Net
borrowings: were flat at
$50 billion.
Float,
liquidity
swaps, Maiden Lane and other assets: $190
billion, an increase of $2 billion W/W. FX liquidity swaps were at $60
million which gives us (even more) concerns about the Fed's disclosure discipline, considering that the ECB disclosed yesterday that the Fed has now has lent out $560 million in FX swaps. The "value" of Maiden
Lane I was at $28.5
billion. Maiden Lane II was at $15.7 billion, Maiden Lane III at $22.8 billion while AIA Aurora was $26
billion.
The monetary base was $1.943 trillion (more on M1 and M2 later)
Reserve balances with banks: $1.026 trillion, an increase of $29 billion from the prior week.
Foreign holdings of USTs and MBS at a new all time high of $3.27 trillion, an increase of $13 billion W/W.

- advertisements -

Thu, 10/14/2010 - 23:25 | 651763 gwar5

As Johnny McEnroe would say, "You can't be serious!!"

Thu, 10/14/2010 - 23:35 | 651786 FEDbuster

Come on Benny, it's just a wafer thin MBS. It's a tiny, little one. It's just one million dollars. Bon appetite ....

http://www.youtube.com/watch?v=rXH_12QWWg8

Thu, 10/14/2010 - 23:29 | 651772 Johnny Yuma

The MBS portion looks like indigestion...

Thu, 10/14/2010 - 23:33 | 651781 themosmitsos

Tyler, what do you think is sadder, that the FED's manipulating the entire market, or that it can do it with only a few billion here & there, every couple of weeks?!?!?!!? :O

Also, Please correct that $13 trillion, I almost had a fucking conniption there for a second! :)

Thu, 10/14/2010 - 23:35 | 651787 Tyler Durden

Early by a year.

Fri, 10/15/2010 - 05:55 | 652122 themosmitsos

ROFLMAO

Fri, 10/15/2010 - 00:05 | 651850 ghostfaceinvestah

How can anyone not see an issue with the Fed being the largest debtholder?

The day they surpass China might be the day the final run on the dollar begins.

Fri, 10/15/2010 - 06:22 | 652131 nmewn

"The day they surpass China might be the day the final run on the dollar begins."

If an entity wanted to hide debt & interest payments I wonder where that would be...an open society or a closed one ;-)

Fri, 10/15/2010 - 00:15 | 651864 TheGoodDoctor

How is this even sustainable? The world must be laughing at us.

Fri, 10/15/2010 - 02:30 | 651978 Dan The Man

i have a nice stash of silver...this is awesome!

Fri, 10/15/2010 - 02:36 | 651985 johny2

so what happens when Ben prints 10 trillion and buys all USA debt? Dollar will get very weak...What happens next?

Fri, 10/15/2010 - 02:57 | 652017 johny2

obviously there will be run on Dollar...fx markets going wild. G20 meetings a main news 24 hours.... it is hard to know what FED' s plan is.

in meantime, i guess its time to buy gold, unless BEN today pulls the QE2 off. very unlikely.

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Fri, 10/15/2010 - 07:53 | 652202 ColonelCooper

Douchebag.

Fri, 10/15/2010 - 07:55 | 652207 tom

China's got about $1.2 trillion of Treasuries. The monthly TIC numbers are completely worthless. If you go by them, foreign central banks have barely increased their holdings of Treasuries since July 09. But if you look at the Fed's count of foreign central bank holdings of Treasuries in its custody, they're up by $500 billion. Obviously, most of that increase is China.

Fed numbers are here: http://www.federalreserve.gov/releases/h41/hist/h41hist9.htm

Thu, 11/04/2010 - 06:18 | 698877 shaoye

Tue, 11/16/2010 - 10:31 | 730563 daniel

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Federal Reserve Balance Sheet Update: Week Of October 13

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