Report published August 26, 2026
Repo Market Commentary: Thinking About Rethinking The Fed Balance Sheet
Source and citation context
- Issuer
- Curvature Securities
- Report date
- August 26, 2026
- Analysis as of
- August 26, 2026
Authors / editors: Scott E.D. Skyrm
Finvaulta summarizes Curvature Securities's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.
Curvature Securities reviews daily repo market rate levels and discusses the Federal Reserve's objective to shrink its SOMA balance sheet from $6.37 trillion down to $3 trillion. General Collateral repo closed at 3.72% on August 26, 2026, alongside an EFFR rate of 3.630%.
Key Takeaways
- 1.Fed Chair Warsh aims to reduce the Federal Reserve's SOMA balance sheet from $6.37 trillion to $3 trillion.
- 2.The Fed has halted balance sheet expansion by ending Reserve Management Purchases (RMPs), with further steps potentially coming at the next FOMC meeting.
- 3.General Collateral repo traded between 3.63% and 3.72% on August 26, closing at 3.72%, while Fed Funds/EFFR averaged 3.630% and SOFR stood at 3.660%.
Table of Contents
- Repo Market Commentary
- Thinking About Rethinking The Balance Sheet
- 2 Year: Overnight Rates
- 3 Year: Overnight Rates
- 5 Year: Overnight Rates
- 10 Year: Overnight Rates
- Overnight Rates: GC, SOFR, Fed Funds
- MBS/GC Spread
- GC: Open, High, Low, Close
- GC/Fed Funds Spread
- RRP Volume
- 20 Year: Overnight Rates
Report data
Repo Market Commentary Rate Table — as of August 26, 2026.
| Metric | Estimate | Context |
|---|---|---|
| SOMA Portfolio Size | 6.37 USD Trillion | Current size of the Federal Reserve SOMA portfolio as of last week. |
| Target SOMA Portfolio Size | 3.0 USD Trillion | Target balance sheet level under Fed Chair Warsh. |
| General Collateral Repo Close | 3.72% | Closing General Collateral repo rate. |
| Fed Funds / EFFR 10:00 AM Average | 3.63% | Effective Federal Funds Rate average at 10:00 AM. |
| SOFR (T-1) | 3.66% | Secured Overnight Financing Rate for previous business day. |
Reports in this series
Repo Market Commentary is shown in chronological order through this edition, published on August 26, 2026.
Part of the Repo Market Commentary series — view all 3 editions
Looking for the latest edition? RMC (Aug 28, 2026)
- Aug 17RMC
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Authors / Editors
Reported Data Context
- SOMA Portfolio Size: 6.37 USD Trillion (2026-08) · Source: Federal Reserve
- General Collateral Repo Close: 3.72 % (2026-08-26)
- Fed Funds / EFFR 10:00 AM Average: 3.63 % (2026-08-26)
- SOFR (T-1): 3.66 % (2026-08-25)