Skip to content Skip to sidebar Skip to footer

Treasury holdings

 Another great graph from Torsten Slok at Apollo

Foreigners hold less, Fed holds more. However, the Fed doesn't really hold Treasurys. The Fed turns Treasurys into interest-paying reserves, which banks hold. And banks turn reserves into bank deposits and other assets which we hold. So it is really a big shift from foreign to domestic holding. At, as a commenter on a previous post reminds us, current interest rates, exchange rates, and rates of other opportunities, which may change. So much for exorbitant privilege? 

Post a Comment for "Treasury holdings"