Keeping you up to date on the latest data releases.
- The Federal Reserve Balance Sheet
Another big chunk of the first Maiden Lane transaction got repaid this week, dropping the outstanding balance of the loan from $28.3 billion to $27.6 billion. Maiden Lane I only recently went into repayment following a two-year grace period after the loan was made. The European Central Bank (ECB) drew $60 million of swaps through the central bank liquidity swap program each of the past two weeks. This marks the fourth and fifth consecutive weeks that the ECB has drawn 7-day swaps. Agency debt and agency mortgage-backed securities continue to decline at a steady pace, having dropped by about $30 billion since the August meeting and over $10 billion in the last week alone. The Fed’s portfolio of Treasury securities has risen by $30 billion as well. For the first time since October 2009, the total amount of excess reserves on the Fed’s balance sheet has dropped below $1 trillion. Also, the Treasury’s general account at the Fed spiked this week, with the approach of the end of the third quarter, jumping from $22 billion to $77 billion. This rise in the general account, which typically collects the outflows of deposits from depository institutions, may help to explain the drop in excess reserves.