Treasury Secretary Timothy F. Geithner said financial markets have “confidence” in U.S. government finances as politicians seek to narrow a record budget deficit. BloombergTrader Dan:
Since the beginning of December 2010, the Fed has purchased an average of $24 billion of Treasuries each and every week. They are now holding an astonishing $1.345 TRILLION in US Treasury obligations making them the largest holder of Treasuries on the planet, larger than even China with its reported $1.116 Trillion in Treasury holdings.
Fears still remain that Japan will become a net seller of US Treasuries to fund the rebuilding of their shattered nation. Current holdings for Japan are $882.3 Billion.
The question remains unanswered - who is supposedly going to step up to purchase any Treasuries that the Fed might wish to sell in order to reduce their balance sheet given the fact that their yields remain abysmally low compared to other nations around the world?
Who do you believe?
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