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To: Sam who wrote (27348)9/17/2022 10:13:27 PM
From: Les H  Read Replies (2) | Respond to of 29601
 
They have over 2 trillion dollars in money market funds parked in the Fed\s Reverse Repurchase Facility because there's a shortage of government securities for them to invest in without driving the yields below zero.

newyorkfed.org



To: Sam who wrote (27348)9/18/2022 10:35:39 AM
From: robert b furman  Respond to of 29601
 
Hi Sam and Les,

the Fed boosted its monthly balance sheet runoff to $60 billion of Treasurys and $35 billion for mortgage backed securities, for a total of $95 billion per month.


How much of this is simply not renewing the securities that come due through expiration.


Then if greater than that, do they go to the market to buy back at the market? If they are buying back in the market, does not buying demand drive price up and the yield down?


Prices on treasuries have surely been going up NO?


Wondering how that works?


Bob