Table of Contents
We also keep an eye on Primary Credit and look at the Fed’s deal with the Swiss National Bank.
By Wolf Richter for WOLF STREET.
Total assets on the Federal Reserve’s weekly balance sheet, released today, with balances as of November 2, dropped by $82 billion from the October 5 balance sheet, to $8.68 trillion, the lowest since December 8, 2021.
Treasury securities mature mid-month and at the end of the month, which is when they roll off the Fed’s balance sheet. Today’s weekly balance sheet included the Treasury roll-off on October 31.
Treasury securities: Down $196 billion from peak.
Since the peak in early June, $196 billion in Treasury securities have rolled off the Fed’s balance sheet, reducing the balance of Treasury securities to $5.57 billion, the lowest since November 17.
Over the four weeks since the October 5 balance sheet, $59 billion have rolled off:
- Treasury notes and bonds (2-30 years): -$46.2 billion
- Treasury bills (1 year or less): -$12.6 billion
- Treasury Inflation Protected Securities (TIPS): unchanged
- TIPS related inflation compensation: -$0.07 billion
Mortgage-backed securities: Down $62 billion from peak.
Since the peak, the balance of MBS had dropped by $62 billion. Over the past four weeks, the balance declined by $20 billion.
MBS come off the balance sheet mostly via pass-through principal payments that occur when the underlying mortgage is paid off or when regular mortgage payments are made. Mortgages are paid off mostly…
