Primary Dealer Treasury Holdings Hit Record Level As Fed Scales Back And Tightens

Aug. 16, 2024 1:20 PM ETS&P 500 Index (SPX), SP500, DJI, TLT, , , , , , , , , , , , , , 59 Comments
Michael Gray
2.47K Followers
(10min)

Summary

  • Primary Dealer Treasury Holdings hit a record level of $323 billion.
  • Primary Dealers increasing Treasury positions due to the Fed cutting holdings and increased Treasury issuance.
  • Weak Treasury auction results and deteriorating market liquidity indicate a lack of traditional fixed-income investor interest.

Government bonds are shown using the text and photo of dollars

Andrii Dodonov/iStock via Getty Images

Primary Dealer Treasury Holdings

Primary Dealer Treasury Holdings hit a record level of $323 billion this past week.

There are several reasons why Primary Dealers have been increasing their Treasury positions.

First, among them, is that the largest owner of Treasury securities

This article was written by

2.47K Followers
Michael Gray has devoted his career to following the capital markets and managing fixed income assets. He founded Gray Capital Management LLC and before that was Head of Taxable Fixed Income at Fidelity Investments. Michael has an MBA in Finance from Wharton and a BA in Economics from Union College.

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