Fed Exit Means No Pain for Obama as Foreigners Take Up Slack
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Treasuries are signaling that the $9 trillion market will weather the end of the Federal Reserve’s quantitative easing program in June without suffering a selloff that drives long-term borrowing cost higher.
The class of investors that includes foreign central banks purchased 60 percent of the $66 billion in benchmark 10-year U.S. notes sold this year, up from 42 percent in 2010. Fed data show banks have increased their holdings of Treasuries to the most since December, as a panel of bond dealers and investors that advises the government says lenders may double their stake to $3.2 trillion in 2016.