Fed Tapers QE Again, Will Buy “Only” $30 Billion In Treasuries Per Day

From an initial $75 billion per day, The Fed reduced its daily buying to $60 billion per day, then  last week announced another ‘taper’ in its bond-buying program to $50 billion per day for next week. Now it has slashed its buying to “just” $30 billion per day.

Having implicitly confirmed there is now a shortage of bonds as demonstrated by the recent repo ops that saw zero submissions as instead of using repo to park bonds with the Fed Dealers merely sell them back to the Fed, the NYFed has announced it will continue cutting back, or tapering, its “unlimited QE” bond-buying next week.

Here is the full schedule for the week ahead.

Additionally, The Fed will taper its MBS buying from $25 billion to around $15 billion in MBS per day next week: 

•  

• Mon: $14.55

• Tue: $15.675 

• Wed: $14.55

• Thur: $15.675

• Fri: $14.55

So, in aggregate, The Fed will buy a total of $225 billion of MBS/TSYs next week… still vastly more on a weekly basis than the largest “QE” programs monthly totals before this crisis.