Barclays predicts that the Federal Reserve will start expanding its balance sheet earlier, purchasing Treasury securities starting in February next year.

After several key Federal Reserve officials suggested expanding the balance sheet, Barclays strategists predict that the Fed will start purchasing Treasury securities in February next year. Barclays strategist Samuel Earl wrote in a report on Thursday, "Given the market's focus on repurchase rates, the Fed is in risk management mode, and early initiation of asset purchases seems to be the most likely outcome."