Monday, December 14, 2009

Fed MBS Purchases: Over 85% Complete

by Bill McBride on 12/14/2009 02:23:00 PM

Just an update on the status of the Fed's MBS purchase program.

From the Atlanta Fed weekly Financial Highlights:

Fed MBS Purchases From the Atlanta Fed:

  • The Fed purchased a net total of $16 billion of agency-backed MBS in each of the last three weeks, with the last one through December 2. This purchase brings its total purchases up to $1.058 trillion, and by the end of the first quarter 2010 the Fed will have purchased $1.25 trillion (thus, it is 85% complete).

  • In the last two months, the average weekly amount of MBS purchased has been smaller, averaging $17 billion over the last 10 weeks versus the average of $23.4 billion before that period.
  • The Fed purchased an additional $16 billion net in MBS over the last week.

    Fed Assets And on the Fed balance sheet:
    The balance sheet shrank slightly between November 26 and December 2 to $2.24 trillion.
    Note that the Fed balance sheet is mostly Agency & MBS and Tresuries now.

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