Posts Tagged ‘us treasury bonds’

Ok, this is a huge sign of the trouble we are in.  Our own Federal Reserve is the second largest owner of our debt and only $25 billion behind China?  How many times have you heard that China owning so much of our debt is a bad thing?  I bet this is the first time most have heard that the Fed owns basically, just as much?  Why?


Federal Reserve Is Now Second Largest Holder Of US Treasury Bonds

The Federal Reserve holds $821.128 billion of US Treasury Bonds, surpassing Japan today to become the second largest holder of US Treasury Bonds. The Federal Reserve is $25 billion away from surpassing China for the number one spot.



It’s Official: Fed Is Now Second Largest Holder Of US Treasury Bonds

Today’s POMO is over: at $2.069 billion, the operation was right in line with our expectations, coming in at a lofty 12.16 submitted to accepted ratio, as investors apparently are not too crazy about the yield perspective of the 4 2013 CUSIPs that were repruchased. However, what is far more important is that with holdings of $821.1 billion, the Fed is now officially the second largest holder of US Treasurys. Next up- China.

While the official breakdown will likely be a few weeks late in coming, here is the math:

Fed holdings as of September 30: $811,669


Total: $821.128 Billion, which compares to Japan total $821.0 Billion as of July 2010

Congratulations, America: your central bank is just $25 billion away from being the Treasury’s largest creditor, and thus able to dominate any and all future debt restructuring negotiations with what is, essentially, itself.


Click on the article title for a link to full original referenced article.

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