Another great chart from Torsten Slok of Apollo

Foreigners hold less, the Fed holds more. However, the Fed does not really hold U.S. Treasuries. The Federal Reserve turned Treasury bonds into reserves held by banks to pay interest. Banks convert reserves into bank deposits and other assets held by us. Therefore, it is indeed a big change from foreign holding to domestic holding. Now, as the commenter of the previous post reminded us, current interest rates, exchange rates, and other opportunities may change. Such a high privilege?

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