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Handout for Simon Potter’s Concluding Remarks at the Conference "Monetary Policy Implementation in the Long Run"
Figure 2: SOMA Agency MBS Purchases and Primary Mortgage Rate

Figure 1: Composition of SOMA Domestic Securities Holdings
Billions of U.S. Dollars
$4,500

Percent

Billions of U.S. Dollars

6.0

$140

Agency debt
$4,000

LSAP 1

Reinvestments

LSAP 3

Freddie Mac 30-year Primary Mortgage Rate (Right)

Agency MBS
$120

5.5

$100

5.0

$80

4.5

$60

4.0

$40

3.5

$20

3.0

Treasury securities
$3,500

$3,000

$2,500

$2,000

$1,500

$1,000

$500

$0

$0
Jan-07 Aug-07 Mar-08 Oct-08 May-09 Dec-09 Jul-10 Feb-11 Sep-11 Apr-12 Nov-12 Jun-13 Jan-14 Aug-14 Mar-15 Oct-15 May-16

2.5

2009

Source: Board of Governors of the Federal Reserve System. Figures are weekly averages of daily figures and include unsettled holdings.

2010

2011

2012

2013

2014

2015

2016

Sources: Board of Governors of the Federal Reserve System; Federal Reserve Bank of New York; Federal Home Loan Mortgage Corporation.

Figure 4: SOMA Purchases of Agency MBS by Coupon

Figure 3: Projected versus Actual Receipts of Principal on SOMA Securities for 2016

3.0
Billions of U.S. dollars

3.5

4.0

4.5

100%

$50

Projected agency MBS paydowns

Actual MBS Paydowns
90%

$45
80%

$40

70%

$35

$30

60%

$25

50%

$20

40%

$15

30%

$10

20%

$5

10%

$0
Jan-16

Feb-16

Mar-16

Apr-16

May-16

Jun-16

Jul-16

Aug-16

Sep-16

Oct-16

Nov-16

0%

Dec-16

Sep-13

Source: Federal Reserve Bank of New York.
Notes: Principal receipts for January 2016 through October 2016. Projections are as of December 31, 2015. Figures are monthly and are rounded.

Dec-13 Mar-14

Jun-14

Sep-14

Dec-14 Mar-15

Jun-15

Sep-15

Dec-15 Mar-16

Jun-16

Sep-16

Source: Federal Reserve Bank of New York
Notes: 30-year securities, across agencies. September 2013-September 2016. This does not include purchasses of 15-year MBS, which have ranged from 2.0 to 3.5 percent.

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