Treasuries: It's Full of Fed

Eye-popping chart from RBC (via the FT) showing the dominance of 4- to 6-year Treasuries by the Fed after quantitative easing. Essentially, it's full of Fed.



http://paul.kedrosky.com/archives/2010/10/treasuries_its.html

 

Fed likes to buy intermediate treasuries... not really a surprise for anyone.

 

Incidentally, there's been chat that they're potentially going to buy 30s this time arnd. Probably wishful thinking on behalf of some mkt participants.

 

GS finally putting on a 10s30s flattener no doubt. They had a steepener on for a very long time.