Fed Balance Sheet: Week of August 5, 2009

by: Tyler Durden

Total Federal Reserve balance sheet assets for the week of August 5 of $1,988 billion consisting of:

  • Securities held outright: $1,354 billion (an increase of $125 billion MoM, resulting from $35.9 billion in new Treasury purchases and a $80.4 billion increase in Fed Agency Debt - the acceleration in MBS purchase picking up after $77.4 billion last week, almost $160 billion in agencies purchased in the last two weeks)
  • Net borrowings: $282 billion (a decline of $57 billion month over month)
  • Float, liquidity swaps, Maiden Lane and other assets: $282 billion (a recent record decrease of $76 billion month over month due to a continued reduction in Central Bank Liquidity Swaps ($49 billion) and ($32) billion in CPFF outstandings).
  • Foreign central bank liquidity swaps are again at the lowest level since the Lehman bankruptcy ($77 billion) - the level in 2008 pre-Lehman was $62 billion. The Fed is aggressively recalling any and all liquidity swaps.

Foreign holdings of USTs and Agencies increased by $23.5 billion monthly to $2,810 billion from $2,787 billion in the prior month. This is now less than 20% of the comparable increase in Securities Held Outright by the Federal Reserve, implying foreign purchasers are starting to fall far behind in their purchases of US securities relative to the Fed's monetization rate.

The Federal Reserve's Monetary Base number of $1,663 billion was unchanged from the prior week (click to enlarge).