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Office Of Debt Management 2013 Q1 Report: In February 2013 The Federal Reserve Will Buy 75% Of New 30 Year Treasury Supply (An Economy Built On An Illusion)
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Office Of Debt Management 2013 Q1 Report: In February 2013 The Federal Reserve Will Buy 75% Of New 30 Year Treasury Supply (An Economy Built On An Illusion)
We urge readers to read the bolded section below, which comes straight from this quariter's Treasury Borrowing Advisory Committee (i.e., Primary Dealers) presentation to the Treasury Department, and explain, with a straight face, just how the Fed will ever be able to not only stop monetizing debt and injecting $85 billion of flow into the stock market, but actually sell any holdings.
Federal Reserve Holdings (1 of 2)
As of Dec 26, 2012 the Federal Reserve System Open Market Account (SOMA) held approximately $300 billion in 21+ year US Treasury debt
SOMA holds 41% of the 30y Treasury bonds issued since 2009
In Feb 2013, Fed will buy 75% of new 30y Treasury supply
Twist and QE operations have significantly lengthened the WAM of the Fed’s SOMA portfolio
The Fed currently owns 29% of all marketable 10yr Equivalents outstanding