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(Replying to myself) I found this graphic: https://fingfx.thomsonreuters.com/gfx/mkt/12/4001/3971/U.S.%20primary%20dealers%20Treasury%20holdings.png https://fi

by gniv 7y ago

(Replying to myself) I found this graphic: https://fingfx.thomsonreuters.com/gfx/mkt/12/4001/3971/U.S.%20primary%20dealers%20Treasury%20holdings.png https://fingfx.thomsonreuters.com/gfx/mkt/12/4001/3971/U.S.%... linked from this article: https://wkzo.com/news/articles/2019/jul/30/us-seen-ramping-up-bill-supply-after-budget-deal/922978/ https://wkzo.com/news/articles/2019/jul/30/us-seen-ramping-u... Funny thing is, given the recent trend in treasury yields, these banks are making good money on their holdings.

neplus 7y ago
You'll notice in this graphic the sharp jump in holdings that corresponds to around October. This is when - for foreign buyers - the yield curve really inverted for practical purposes, leading to primary dealers filling up their books, which I detailed a bit in my initial post.