The Fed just bought $34.8B in Treasuries in 2 days — but it’s “not QE”… right?

9 comments

1. r/Economy101

   

2. Depends if they are replacing treasuries that expired or adding to the money supply

3. They are trying to temper the sell-off. Dollar and treasuries crashing make it hard for Donny Dunce to negotiate tariff deals. Potential trade partners will want to wait this out, let the pressure build on the great negotiator.

4. Technically no. QE is when the Fed “buys” the Treasury bonds at bank holds and replaces it with cash.

5. Look up 912828XB1 the 10yr note issued in 2015.

   The Soma portfolio has 15,722,818.6 in inventory.

   The purchase from this auction is replacing what they previously owned. Technically, it’s less, so a smidgen of “QT” to a degree.

   The Soma portfolio always holds an amount of the most recent auctioned issues. (They also have 31+ billion of the 91282cEQ0’s rolling off on that same date (5/15/25). https://www.newyorkfed.org/markets/soma-holdings) You’ll see the Fed replacing issues most of the time there are auctions. Re-openings don’t usually have the same amount purchased.

6. QE was a few trillions

7. Buyer of last resort possibly? I don’t know the specifics, but the larger question we should be asking is why is the Fed buying the debt versus our foreign partners?

8. I thought treasury issuance needs are temporarily massive due to some technical factors

   Something to do with having come,close to government shutdown.. I am assuming borrowing was deferred

   Feel free to downvote me.. Or better yet, google it

9. FED taking some of the sell pressure off of bonds. Lets see where this goes over the next few weeks.

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