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The Federal Reserve (Fed) bought corporate bonds worth $1.3 billion in the week ended July 1, taking the tally to $10.01 billion, Fed data released on Thursday showed, according to Reuters. 

Meanwhile, the central bank purchased $16 billion worth of US Treasuries, boosting its government bond holdings to record highs. 

Even so, its balance sheet size shrank to $7.01 trillion, as the usage of dollar swap lines by global central banks fell by $50 billion.

However, the Fed’s balance sheet is still up 67% from $4.24 trillion in early March. The massive balance sheet expansion has put a strong bid under gold. The yellow metal rallied to an eight-year high of $1,789 per ounce on July 1.