Sunday, January 11, 2015

FED Balance Sheet

As of this week the FED Balance sheet is seen as below:

In some focus the two main items are Treasuries and MBS. This we show below:

 Both seem to be flattening out as compared to a year ago. This is the case for the MBS, and the Treasuries have flattened. One expects some unwinding will occur. This will put pressure on rates although world conditions may keep them low.