Monday, November 8, 2010
You probably know this, but in my quest for information on QE2 on the New York Fed web site, I found all the details of the Fed's security holdings. The statement on the details of how QE2 will be carried out is here. Then, if you go here, you get the a complete listing of the SOMA (System Open Market Account) Treasury and agency security holdings. This gives you the details of the quantities of each issue held, and how much of the total issue is in the SOMA. This will be interesting to watch in the coming months as QE2 unfolds. Note that the planned monthly purchases will account for a large fraction of the quantity of debt the Treasury will have to issue, on average, each month to finance the federal deficit. I'm guessing that the open market desk always purchases newly-issued Treasuries, i.e. "on the run," but I'm not sure. Anyone know?