The Federal Reserve asset purchases in focus; As much as $90 billion a day

I wanted to pass along the data on the most recent Federal Reserve asset purchases, which totaled  $557 billion last week ended Wednesday. The balance sheet now stands at $5.81 trillion.

Here are the most recent purchase schedules from the New York Fed’s website. All the Treasury purchases will be coupon securities and will be slanted to the longer end.

Treasuries:
Treasury Securities Operational Details

Mortgages:
Tentative Schedule of FedTrade Agency Mortgage-Backed Securities (MBS) Operations for the period from March 30, 2020 to April 3, 2020.

As we can see from the above schedules, The Fed will purchase a staggering $90 billion in assets today. Thus, it’s balance sheet will climb to $5.9 trillion by day close. It will buy $60 billion in Treasuries and $30 billion in Agency mortgage debt.

It is difficult for market bears to overcome this huge wave of asset purchases, and while the average person on the street will not benefit (asset prices will rise over the long-term, regardless of economic circumstances), we need to note that the Fed will do whatever it takes to keep the markets moving north.

Because of these asset purchases, the markets initially responded well to the dire employment numbers that crossed the tape at 8:30AM. The worse the numbers, the more assets that will be bought.

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