$3.601B Treasury Coupon Purchase 2020-08-20
This does not include the final settlement of previous forward MBS purchase contracts. The Fed settles these on three separate days around the third week of each month. The Fed deposits cash into the accounts of Primary Dealers in payment for the prior purchases. This tends to support bullish moves in the financial markets around those settlements. Today’s settlements totaled $26.4 billion.
The Fed purchase schedule is published several weeks in advance, and the TBAC provides a schedule for the next 20 weeks in early August, November, February, and May.
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Here’s the latest.
The forecast has changed. It’s less bearish, but it’s still bearish. Here’s why.
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