Corporate Bond & Junk Bond Markets Driven into Foaming-at-the-Mouth Exuberance by Fed Jawboning About Huge Purchases, but it Actually Bought Just Tiny Amounts

by Wolf Richter
Wolf Street

Here are the details on its purchases and holdings in July.

The Fed disclosed yesterday afternoon the amounts and names of the corporate bonds and corporate bond-ETFs that it bought in July. The Fed started buying corporate bonds for the first time ever in June, after having started buying bond-ETFs in May. The amounts are small – measured in millions and single-digit billions – and disappear as rounding errors on the Fed’s overall balance sheet measured in hundreds of billions and trillions.

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