The Fed dominates the US Treasury market

Belgium was the largest  foreign buyer of US debt in NovemberLast week the Federal Reserve published new data regarding the foreign holdings of US Treasuries. These numbers show Belgium was the largest buyer of US Treasury debt in November last year with an increase in holdings of $20.3 billion. China came in second with a purchase of $12.2 billion of US debt and Japan was the third largest buyer with a $12 billion increase in US government bond holdings.  The largest seller was Russia, decreasing it’s US Treasury holdings by $10 billion.
The following charts shows the net changes in bond holdings for the largest foreign holders of US debt.
As you can see below, the Federal Reserve dominates the charts with their bond buying program called QE.

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Submitted by Market Update:

Last month, the central bank took $47,7 billion dollars of US Treasuries out of the market. In the first eleven months of last year, Bernanke added $456,7 billion dollars of US Treasuries to the Fed balance sheet. This figure dwarfs the $102,5 billion of debt bought by China and the $82,5 billion added by the Japanese.

Belgium was the largest  foreign buyer of US debt in November

Belgium was the largest  foreign buyer of US debt in November

The Federal Reserve bought $456,7 billion of US Treasuries, dwarfing China and Japan

The Federal Reserve bought $456,7 billion of US Treasuries, dwarfing China and Japan

Federal Reserve stockpiling US Treasuries

The Federal Reserve has been buying US Treasuries for a while now. In the last four years they bought more than $1,6 trillion of US government debt, while China and Japan only managed to purchase $577,1 and $551,6 billion of US debt. The next chart explains it all.

The Federal Reserve bought way more Treasuries than any foreign country

The Federal Reserve bought way more Treasuries than any foreign country

 

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Comments

  1. More importantly, it shows that foreign countries remain NET buyers of US T-bonds, and have increased their holdings substantially since 2009.
    The idea that foreigners were going to “dump the dollar” because of QE programs just never materialized, and the complete opposite has occurred.
    The fact that the Fed is also a large holder/buyer (because of the massive debt issuance) seems to mean very little to foreign holders.

    • Also look at the Countries that are selling in the red combined with the USA holding the majority. The Chinese have made a deal with the US, They will buy their bonds if they get the gold. Very simple. Keep Stacking

  2. It’s strange to see China buying our debt. They must be getting rid of long UST bonds and buy the near-cash equivalents of 3mo, 6mo and 1 year UST notes.  Those can be dumped for cash quickly.  UST 10 yrs have lost a large percentage of value after rates increased to 3% from 1.5%   Still, holding UST obligations must mean something.  A parking lot for FIAT from WMT?

  3. Strange isn’t it that LOTS of commentators having been saying recently that there are no foreign buyers of US bonds but here we are……..
    My observation from a UK perspective is, why are Belgium buying so much? Hmmmm 

  4. The Chinese just bought the federal reserve.  Keep stacking Silver, Gold.
    Next revolution will be April 4th, if not before?  
    Vatican just got purged, 4 bankers?
    Davos, Switzerland mtg. January 22-25th 2014.  (RESET) in motion.
    Prince William going to the thrown of England, king or anti-christ?
    Much more…

  5. I very like fiat currency. Because they can still be exchanged for real money – gold and silver!

  6. How do we know that the information presented (from the Federal Reserve Bank of St. Louis) above is even truthful? Since when do Federal Reserve banksters tell the truth? We all know that they’re great at telling lies, and in deception. Has the information above been verified by an independent audit? No, it hasn’t, I presume. Therefore the presented data is truly worthless, and any further discussion on this bond data is a waste of time.

  7. The graphs show the real house of cards but it didn’t show how many usa bought bonds of other countries. I believe the QE trick isn’t new its been around along time. QE=FRE$=MegbkXs10=Trilbillof$.

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