IPFS News Link • Federal Reserve
If The Fed Sells Treasuries... Who Will Be Buying? Answer: "Other" (Seriously)!
• zerohedge.com by Chris HamiltonThe buyers during that period are depicted in the first column of the chart below. During that time, the majority buyer of that debt was the Intra-Governmental Surplus funds (primarily Social Security) as depicted by the green area in the first column below. These funds were mandated to buy "governmental accounting series" non-marketable debt. The remainder of the issuance and holdings were fairly evenly split between foreigners and domestic buyers (primarily institutional buying) with a minor portion of primarily short term Notes and Bills held by the Federal Reserve.
From 2008-->2014, the US Treasury nearly issued as much debt as it had in the previous 230+ years. But the proportions bought and held by these creditors significantly changed (depicted by middle column in the chart below). Intra-Governmental surplus funds were dwindling so the buyer of nearly half of all Treasury debt up to that point took a back seat, buying only 8% of the new issuance. No surprise, it was the Federal Reserve and Foreigners that bought 2/3rds of the issuance, maintaining a strong bid. The Fed sold all it's short term bills and notes and went large and long. And foreigners apparently just couldn't get enough