Keeping you up to date on the latest data releases.
- Federal Reserve Balance Sheet
A second small-scale Term Deposit operation took place this week, and it was met with more strong demand. Over $11 billion of bids were entered for just $2 billion worth of deposits, making the stop out rate equal to that of the first auction (27 basis points). The end of the month marked the end of a reserve maintenance period and the end of a quarter, but there were only minor adjustments made to both currency and reserves. Assets remained steady this week, with more adjustments toward normalcy taking place. Discount Window lending declined, credit extended to AIG was repaid and there were no new draws on the central bank liquidity swap lines. Early in the week, the New York Fed announced that it would begin conducting agency mortgage-backed-security (MBS) coupon swap operations to help settle the Fed’s agency MBS purchases that concluded at the end of March. According to the press release, these operations will be used in conjunction with MBS dollar roll operations and are not expected to exceed the unsettled amount of $9.2 billion in Fannie Mae coupon securities. The most recent balance sheet release reported that $2.5 billion of these types of operations had already occurred.