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I wonder what fraction of the Treasuries sold at auction are purchased by the banks engaging in this behavior? If it's a decent but not overwhelming amount, it
by joshu 17y ago
I wonder what fraction of the Treasuries sold at auction are purchased by the banks engaging in this behavior?
If it's a decent but not overwhelming amount, it could be causing the auctions to be priced hire and thus overall increase the government's take.
So it's not necessarily clear what's happening here...
- joshu 17y agoActually, to get $3b in return, consider how many billions of dollars they'd have to buy of Treasuries. (1yr are paying .37% through 4% on 30yrs, which they probably aren't buying.) Anyone know offhand how much the banks did borrow?