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Fed Buys $20B in 3-Year Bonds — Is QE Back or Just a Balance Sheet Shuffle?
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BREAKING: The Fed just scooped up $BTC 20.47 billion worth of 3-year Treasury bonds during the May 5 auction. Instantly, everyone started asking: “Is this the return of QE? Are they printing money again?
Let me break it down clearly:
No, this isn’t QE. It’s just reinvestment.
Let’s go deeper into what’s really happening here:
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What is SOMA?
SOMA stands for System Open Market Account. It’s the Fed’s portfolio of Treasury and agency securities, managed by the NY Fed. This account is used to implement monetary policy — and it’s important to understand that not every purchase from SOMA means “new money” is being pumped in.
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Why Did SOMA Buy at This Auction?
Simple: Reinvestment.
When bonds in SOMA’s portfolio mature, the Fed doesn’t just let that money sit — it reinvests the cash into new Treasuries to maintain the balance sheet size. This is pre-scheduled, non-competitive, and most importantly, not QE.
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So What Actually Happened?
At the May 5 auction:
$BTC 168.7B in total bids
$BTC 78.5B accepted
Of which $20.47B came from SOMA
The rest? Bought by dealers, funds, and other investors.
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Bottom Line:
This isn’t money printing.
SOMA’s activity is like rolling over a CD when it matures — not adding new funds, just keeping the same amount in play.
So no, QE hasn’t restarted.
But yes, it’s worth watching how reinvestments evolve over time, especially if the Fed pivots on rates or balance sheet policy down the road.
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#FederalReserve #QE #SOMA #BondMarket #USBonds #MoneyPrinting #MacroNews #MonetaryPolicy #ReinvestmentNotQE #FedWatch #3YearTreasury #CryptoMacro #FinancialNews
BREAKING: The Fed just scooped up $BTC 20.47 billion worth of 3-year Treasury bonds during the May 5 auction. Instantly, everyone started asking: “Is this the return of QE? Are they printing money again?
Let me break it down clearly:
No, this isn’t QE. It’s just reinvestment.
Let’s go deeper into what’s really happening here:
---
What is SOMA?
SOMA stands for System Open Market Account. It’s the Fed’s portfolio of Treasury and agency securities, managed by the NY Fed. This account is used to implement monetary policy — and it’s important to understand that not every purchase from SOMA means “new money” is being pumped in.
---
Why Did SOMA Buy at This Auction?
Simple: Reinvestment.
When bonds in SOMA’s portfolio mature, the Fed doesn’t just let that money sit — it reinvests the cash into new Treasuries to maintain the balance sheet size. This is pre-scheduled, non-competitive, and most importantly, not QE.
---
So What Actually Happened?
At the May 5 auction:
$BTC 168.7B in total bids
$BTC 78.5B accepted
Of which $20.47B came from SOMA
The rest? Bought by dealers, funds, and other investors.
---
Bottom Line:
This isn’t money printing.
SOMA’s activity is like rolling over a CD when it matures — not adding new funds, just keeping the same amount in play.
So no, QE hasn’t restarted.
But yes, it’s worth watching how reinvestments evolve over time, especially if the Fed pivots on rates or balance sheet policy down the road.
---
#FederalReserve #QE #SOMA #BondMarket #USBonds #MoneyPrinting #MacroNews #MonetaryPolicy #ReinvestmentNotQE #FedWatch #3YearTreasury #CryptoMacro #FinancialNews
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#om $OM #mantradao why did it rise? The project, called Om, launched a new branding move. While the project was in a dead state, the team started working and made successive moves. First of all, the change started with the name of mantra. Then chain, defi and rwa moves came to the fore. No stakes have been opened before. It opened for the first time and the community embraced it. Thanks to the Dao structure, consistent decisions were submitted for community approval. Stake rewards have reached a satisfactory level. 10 percent of the supply is staked. Then #soma airdrop was made. Soma was launched as a fully regulated and US-compliant project. Those who stake will receive both staking reward and soma. Then rwa Wind was taken. Mantra is fully regulated and compliant. This makes it possible for him to do business in the rwa sector. As a matter of fact, rumors of cooperation with Duabi began to be heard. Then the community rejected an offer. This was to issue a new token on the mantra chain instead of om. The community rejected this, thinking that the om token would lose its value. This gave momentum to om token. Then, the issue of turning into layer 1 and determining the main token as om as layer 1 was put to vote. Ultimately, the community voted yes on a major concern. Mantra will now be layer 1 and the main token will be om. So om will be used for all operations. The story so far held true and om experienced a huge rally from 0.017 to 0.34. There are a few possibilities at this stage. The price has reached a certain saturation level and may not show the former rapid acceleration. Deep correction did not do at all. He might need it. Those who bought at 0.022 like me may now be taking profits. These may cause the price to stay around for a while. This is the downside.
Positive things: om is still small in market value. 200 million dollars. This is not a huge market value and shows that it has room to rise. It could easily reach $1 billion. This indicates a price of around 1 dollar. The team is very hardworking. It caught the wind well.
Positive things: om is still small in market value. 200 million dollars. This is not a huge market value and shows that it has room to rise. It could easily reach $1 billion. This indicates a price of around 1 dollar. The team is very hardworking. It caught the wind well.
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