Thursday, October 22, 2009

Fed Treasury Purchases: Just $2 Billion More

by Bill McBride on 10/22/2009 04:00:00 PM

Just an update on the status of the Fed's Treasury and MBS purchase programs.

From the Atlanta Fed weekly Financial Highlights:

Fed Treasury Purchases From the Atlanta Fed:

  • The Fed has purchased a total of $297 billion of Treasury securities through October 21, bringing it about 99% toward its goal. Of these purchases, $4.5 billion have been TIPS.

  • Last week, the Fed made a purchase on October 13 for $2.95 billion in the seven-to-10-year sector.
  • The NY Fed purchased $1.05 billion more yesterday, so there is just $2 billion more to come over the next week.

    Fed MBS Purchases And from the Atlanta Fed:
  • The Fed purchased a net total of $16.1 billion of agency-backed MBS between October 8 and 14, bringing its total purchases up to about $945 billion, and by year-end [CR Note: by the end of Q1] the Fed will purchase up to $1.25 trillion.
  • The Fed purchased an additional $18.1 billion net in MBS over the last week, bringing the total to $963 billion.

    The Treasury purchases will end next week - and will probably make the news. The MBS purchases are ongoing.

    Stock Market Crashes Market update:

    The third graph is from Doug Short of dshort.com (financial planner): "Four Bad Bears".

    Note that the Great Depression crash is based on the DOW; the three others are for the S&P 500.

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