https://econimica.blogspot.com/2017/04/if-fed-sells-treasuryswho-will-be-buying.html
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.
But since QE ended in late 2014, the make-up of the
new buyers / holders of US Treasury debt is totally different (depicted
in the right column of the chart below). Obviously, the Fed Reserve has
purchased nothing (on a net new basis…of course they have been buying
to replace bonds rolling off, but no net new buying) and since the Fed
ceased buying, Foreigners (net) have sworn off US Treasury debt and sold
$200+ billion. So the only buyers for the continuing issuance and the
portion not rolled over by foreigners is the domestic public (with an
assist by the dwindling Intra-Governmental surplus).
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