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Comment: Fed’s holdings of securities just under $6.0 trillion in week ended June 3

The Fed’s outright holdings of securities were up only $1.4 billion in the week ended June 3, rising to $5.960 trillion. Purchases of Treasury notes and bonds were up $21.3 billion to $3.796 trillion, while holdings of Agency MBS were down $19.9 billion to $1.835 trillion. The pace of purchases of Treasurys continued to slow, although it remained substantial. The decline in Agency MBS reflected the end of month and a time when maturing securities were more than the amount purchased.

Use of repurchases and reverse repurchases increased toward month end as these normally do. Repos totaled $199.7 billion, up $24.8 billion from the prior week. Reverse repos were up $7.6 billion to $253.1 billion.

Discount window borrowing continued to decline to $13.7 billion in the June 3 week average, the lowest since $6.7 in the March 18 week average.

Central bank swap lines were about unchanged in recent weeks. The total was $447.2 billion in the June 3 week after $448.7 in the prior week.

Use of Federal Reserve credit facilities was generally higher in the June 3 data. Notable is that the Paycheck Protection Program Lending Facility was increasing steadily.

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