Topsy-Turfy! Fed’s Assets At $7.7 Trillion, Up $3.5 Trillion in 13 months, 10Y T-Yield UP, Gold Down, Bitcoin Up

by confoundedinterest17

Financial markets are topsy-turfy after the Covid panademic struck.

The Federal Reserve rode to the rescue and increased their balance sheet by $3.5 trillion in just 13 months (white line). While some would think that the US Treasury 10-year yield would fall, … it has been going up from 0.543% on March 9, 2020 to 1.726% today (blue line).

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Gold initially shot up in price following The Fed’s massive asset purchases (gold line), but has tapered off. While Bitcoin (electric green line) has risen to $57,664.77.

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And the S&P500 index is soaring with Fed stimulus.

With the Biden/Pelosi multi-trillion dollar spending spree under way, look for The Fed’s balance sheet to absorb much of the Biden/Pelosi spending spree.

Ain’t that a lot of …

 

 

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