The Fed remains the dominate owner of Treasuries. The scope and size of Quantitative Easing during the last few years means even with tightening, the Fed's balance sheet will remain large for years to come. The figure below from Apollo Global Management's chief economist Torsten Slock shows that the Fed still owns 35% of Treasuries with maturities 10 years or longer.
Source: Apollo Academy
Allison Schrager is a senior fellow at the Manhattan Institute. Follow her on Twitter here.
Interested in real economic insights? Want to stay ahead of the competition? Sign up for our weekly newsletter here.
Photo by marchmeena29/iStock