Bernanke and the Fed: Firing on All Cylinders

The Federal Reserve Bank of New York has just reported it's activities under the Agency Mortgage-Backed Securities Purchase Program, for the 7 day period ending on July 22nd. For the mathematically lazy, the purchases documented below amount to (net) $21.125Billion worth of new agency securities. The majority of the lever-pulling is happening in the 30 year, and at the 4.5-5 coupon. These MBS's will presumably be tucked away in the Fed's gargantuan balance sheet, where they will co-exist with the Maiden Lane trio as well as any number of putrid securities. Purchases ($ million) Maturity Coupon Settlement Month FHLMC FNMA GNMA 30 YEAR 4 Aug 0 0 525 4.5 Aug 2,250 2,750 2,200 Sep 1,600 2,000 600 5 Aug 150 1,000 0 Sep 1,050 500 200 Oct 1,250 2,600 0 5.5 Aug 0 950 0 Sep 0 650 0 6 July 0 0 120 15 Year1 4 Sep 150 0 0 4.5 Sep 0 700 0 Other2 Total 6,450 11,150 3,645 1 Inclusive of 10 year product. 2 20 year, 40 year and other agency programs. http://www.newyorkfed.org/markets/mbs/index.html *InfoNgen facilitated this post

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