Fed passes China in Treasury holdings

What does the Fed know that financial TV does not? The entire Western world financial community is broke. The fragile recovery is Happy Juice from the Dow.

Jim

The Fed knows that primary dealers, the credit brokers for the Fed and Treasury, have steadily withdrawn from bond and note auctions since 2008. Indirect buyers, such as foreign monetary authorities, and anonymous direct buyers have filled the void created by their withdrawal. The latest 5-year bond auction illustrates this trend that financial TV cannot recognize.

5-Year Bond Auction


Headline: Fed passes China in Treasury holdings

The Federal Reserve has surpassed China as the leading holder of US Treasury securities even though it has yet to reach the halfway mark in its latest round of quantitative easing, according to official figures.

Based on weekly data released on Thursday, the New York Fed’s holdings of Treasuries in its System Open Market Account, known as Soma, total $1,108bn, made up of bills, notes, bonds and Treasury Inflation Protected Securities, or Tips.

According to the most recent US Treasury data on foreign holders of US government paper, China holds $896bn and Japan owns $877bn.

Source: ft.com