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  • U.S. Capital Markets Composition [View article]
    China is top holder of US Treasuries, with $600 billion. That puts them about approximately at a 1/8th position in the overall outstanding treasuries.

    The Q3 Treasury net issuance was $178 billion.

    SIFMA projects Q4 Treasury net issuance at $388 billion, and a 2009 federal budget deficit of $688 billion (presumably to be financed with additional net Treasury issuance).

    If we combine 2008 Q3, Q4 and 2009, we get $1.554 Trillion net issuance beyond the June 2008 figure of $4.7 Trillion.

    That would be a 33% increase in Treasury debt, and a tall order for market absorption.
    Nov 18 12:08 pm |Rating: 0 0
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