Riddle me this, Treasury market geeks:
Indeed, foreign purchases of Treasuries have fallen in recent quarters from their boom-like levels of recent years. Russell Napier, a global macro strategist with CLSA Asia-Pacific Markets, notes that in some years this influx of foreign cash exceeded the size of total Treasury issuance. Until 2010, foreign central banks were buyers of at least 40 per cent of what the Treasury cranked out.
However, foreign central banks bought just 16 per cent of Treasury issuance in the first quarter of 2011. As part of its quantitative easing, the Federal Reserve bought the equivalent of almost 200 per cent.
How does that work? What I am I misunderstanding? Are they adding purchases of other than newly issued Treasuries? I may just be tired and thick(er) tonight.