Strategists: U.S. Treasury's increased supply of Treasury bonds could put pressure on the Fed to increase purchases
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最新报道：According to Bijie.com, on August 1 (UTC+8), Shan Ahmed, a strategist at Metlife Investment Management, stated in a report that the US Treasury's plan to issue more Treasury bills to finance the deficit could put pressure on the Federal Reserve to purchase more short-term government bonds. Fed officials have stated that one of the central bank's goals is to align its portfolio structure with the composition of US Treasury bonds in circulation. Currently, the Fed's $4.2 trillion Treasury bond portfolio comprises only $195 billion in Treasury bills, or about 5%. Ahmed wrote, "Increased Treasury use of Treasury bills would further deviate the Fed's portfolio structure from this goal." Based on previous assumptions about the ideal portfolio size, Metlife strategists suggest that the Fed would need to purchase nearly $900 billion in Treasury bills to bring its holdings back to the current 20.2% level. If the Treasury increases the proportion of Treasury bill issuance to 25%, the Fed would need to purchase over $1.3 trillion in Treasury bills.
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