You Got To Be Kidding…..Fed Is Now Second Largest Holder Of U.S. Treasury Bonds

Posted By on October 6, 2010

Today’s POMO is over: at $2.069 billion, the operation was right in line with  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. Number one China lies dead ahead.

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

Fed holdings as of September 30: $811,669

Add:

  • POMO – September 30 (October 1 settlement): $2,200
  • POMO – October 5 :$5,190
  • POMO – October 6: $2,069

Total: $821.128 Billion, which just passed Japan’s total of $821.0 Billion as of July 2010 The U.S. central bank is just $25 billion away from being the Treasury’s largest creditor. Will the Fed dominate any and all future debt restructuring negotiations with what is, essentially, itself……inquiring minds want to know.

www.zerohedge.com

About the author

Comments

Comments are closed.

Copyright © 2019 The Stated Truth