Up Is Down, Left Is Right, Real Is Fake; in Fedspeak, Shrink Is Increase

Anthony Sanders at Snakehole Lounge  ( Original )
JAN 26, 2018

When Janet Yellen indicated, a few months back, that the Fed’s balance sheet was going to be shrinking, something must have been lost in translation. You know. From Fed English to regular English.

It turns out that The Fed didn’t shrink Treasury Notes and Bonds or Floating Rate Notes or TIPs or Federal Agency Securities. They DID increase Agency MBS holdings by $705 million.

This on the heels of the heels of the Fed's asset sales several weeks ago that saw the 10-
Year yield spike in response.