Wednesday, November 4, 2015

A peek at Fed term structure

What bonds or what term does it hold? Hey, it held onto the 30 year, but sold the 5-10 year, realizing a gain.  The sales gain then becomes a remit.

Treasury also gets profits from the GSEs, but they have pooped lately. So I expect the remits and profits to drop from the 90 B range to the 50B range, 2016.

But have no fear, the Republicans can always run up the deficit, which should be close to 3.5% of GDP for a while as the last lump of Republican debt passes through.

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