Year-End Liquidity Turmoil on the Fed’s Balance Sheet. Plus $38 Billion in T-bills Replace $15 Billion in MBS and Add $23 Billion in RMPs
Wolfstreet·2026-01-03 02:46

Standing Repo Facility spiked to 75billionforaday,thenfellback;ONRRPsspikedto75 billion for a day, then fell back; ON RRPs spiked to 106 billion, then fell back. The Fed’s weekly balance sheet released today was as of the close of business on Wednesday December 31, and it contained all the massive year-end liquidity shifts that will reverse within 1-3 days, and already reversed mostly today.In addition, the Fed added 38billioninshort−termTreasurybills,ofwhich38 billion in short-term Treasury bills, of which 15 billion replaced MBS that came off the balance sheet in December; and $23 bill ...