Adding up Fed and Treasury market stimulus yesterday and today. $117 billion.
And people wonder why the market is rallying. I warned about this a couple weeks ago.
Look, there’s no excuse for not knowing. The Fed publishes its purchase schedule and completed purchases a month or two ahead. We know exactly how much MBS will settle and exactly when, a month ahead. We know about the Treasury paydowns, and the fact that they’re coming because they have established the pattern. And we know exactly how much they will be and when they’ll hit a week in advance.
This data is all published in advance. We know what’s coming.