First up, the latest H.4.1 report with the two (huge) QT line items highlighted, November 3, 2022:
1. Factors Affecting Reserve Balances of Depository Institutions
Millions of dollars
|
Reserve Bank credit, related items, and |
Averages of daily figures |
Wednesday |
||
|
Week ended |
Change from week ended |
|||
|
Oct 26, 2022 |
Nov 3, 2021 |
|||
|
Reserve Bank credit |
8,661,929 |
- 39,399 |
+ 131,187 |
8,642,059 |
|
Securities held outright1 |
8,273,847 |
- 27,211 |
+ 216,660 |
8,255,836 |
|
U.S. Treasury securities |
5,592,979 |
- 16,398 |
+ 65,960 |
5,574,965 |
|
Bills2 |
296,059 |
- 2,935 |
- 29,985 |
296,059 |
|
Notes and bonds, nominal2 |
4,821,246 |
- 13,442 |
+ 57,470 |
4,803,184 |
|
Notes and bonds, inflation-indexed2 |
375,761 |
0 |
+ 4,633 |
375,761 |
|
Inflation compensation3 |
99,913 |
- 21 |
+ 33,841 |
99,961 |
|
Federal agency debt securities2 |
2,347 |
0 |
0 |
2,347 |
|
Mortgage-backed securities4 |
2,678,521 |
- 10,813 |
+ 150,700 |
2,678,523 |
....MUCH MORE
This is the second consecutive week we've seen decreases in both the MBS and treasury portfolios, the second consecutive week of $20 billion reductions and the first week the reductions in the two portfolios exceeded the idealized targets of $60 billion/month, $14 billion/week for treasuries and $35 billion/month, $7.7 billion/week for MBS's.
From the Federal Reserve Bank of St. Louis' FRED Database, the total assets on the balance sheet, including interest due the Fed, gold, Ccentral bank swaps etc.:
The total balance sheet (mouseover interactive) is down $67.05 billion over the last two reports. This is what we were warning about, that after an extremely slow start since QT began on June 1, market participants risked being lulled and being caught unprepared should the Fed pick up the pace of the reductions:
October 24: This Could Be Dangerous For Your Portfolios: The Quantitative Tightening That Wasn't
