Fed Balance Sheet Shrinks By $2.5 Billion (Starts Resembling a 30-year Mortgage)

The New York Federal Reserve has released their weekly SOMA (System Open Market Account) report. And as of December 6, 2017, SOMA has declined by $2.5 billion. To $4.2 TRILLION.

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How big is $2.5 billion unwind? It is so big that you can barely see it!

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At this rate, it will take around 30 years to fully unwind the balance sheet. About the same length as a 30 year mortgage. As in 1,685 weeks at this rate.

All this as the Treasury curve keeps flattening towards zero.

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“I’ll be long gone before this suckers unwinds!”

oryellin

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One thought on “Fed Balance Sheet Shrinks By $2.5 Billion (Starts Resembling a 30-year Mortgage)

  1. Pingback: Fed Balance Sheet Shrinks By $2.5 Billion (Starts Resembling a 30-year Mortgage) | Jina Scholten's Blog

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