The FOMC meeting for March will likely put an end to “new” MBS Agency purchases as it strives to reduce its $2.7 Trillion balance sheet. Currently, the monthly spend on MBS is $59.5 billion, with $10 billion of that comprised of “new” purchases and the remainder “reinvestments” of MBS paydowns.
Yield Book
What are the Fed’s options for reducing its balance sheet, how was the current spend derived, will they pursue asset sales, and where can they find added value in their portfolio if they do?
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