Jump to content
House Price Crash Forum
cashinmattress

Fed Second Largest Holder Of Us Treasury Bonds

Recommended Posts

Oh my

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

Add:

* POMO - September 30 (October 1 settlement): $2,200

* POMO - October 5: $5,190

* POMO - October 6: $2,069

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.

Things might get nasty now.

Share this post


Link to post
Share on other sites

The US national debt is approx $13 trillion! So, maybe the Fed is getting close to being the single largest holder but it's still less than $1 trillion, so not a major share of the total debt.

Share this post


Link to post
Share on other sites

The US national debt is approx $13 trillion! So, maybe the Fed is getting close to being the single largest holder but it's still less than $1 trillion, so not a major share of the total debt.

Yes, and it's really meaningless so long as Dollars are still accepted as money.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 145 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.