Here’s a table of today’s Fed QE purchases.
| Operation Type | Settlement Date | Total Par Amt Accepted (mlns) | Total Par Amt Submitted (mlns) |
| Outright TIPS Purchase | 04/20/2020 | $3,500 | $6,163 |
| Outright Coupon Purchase | 04/20/2020 | $15,000 | $36,963 |
| Outright Coupon Purchase | 04/20/2020 | $7,000 | $27,275 |
| Outright Coupon Purchase | 04/20/2020 | $4,000 | $8,461 |
| Total | $29,500 |
The Fed also bought $11 billion in MBS today. These were forward purchase contracts that do not settle until May 13-20, which means that the cash won’t be in dealer accounts until then.
There were no MBS purchase settlements today. $116 billion in MBS past purchases settled Wednesday, April 15. No doubt that that cash was largely what powered today’s rally. And no doubt the Fed would be severely disappointed, maybe even panic stricken, if these gains evaporate.
$17.5 billion in MBS settlements are set for Monday and $47.7 billion for Tuesday. That’s all for next week.
The yield on the 10 Year Treasury did respond to this week’s cash infusion, falling 13 basis points to 0.62% since Tuesday.
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