[1]Few charts capture as effectively the shift in foreign demand for US Treasurys over the past 4 years, or under the Obama administration, as the following two, courtesy of the latest TBAC Q4 refunding presentation [5]. They are quite self-explanatory.
Total foreign demand: Bills and Coupons.
[6]
And foreign demand for just Coupon paper.
[7]
So who is picking up the slack?
[8]
And what is another name for Primary Dealers?...think POMO.... Why, the Fed of course.
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Links:
[1] http://www.zerohedge.com/users/tyler-durden
[2] http://www.zerohedge.com/taxonomy_vtn/term/11285
[3] http://www.zerohedge.com/taxonomy_vtn/term/9652
[4] http://www.zerohedge.com/taxonomy_vtn/term/12415
[5] http://www.treasury.gov/resource-center/data-chart-center/quarterly-refunding/Documents/November%202012%20Qtrly%20Metric%20Package%20FINAL.pdf
[6] http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2012/10-2/Foreign%20Demand%20TSY%201.jpg
[7] http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2012/10-2/Foreign%20Demand%20TSY%202%20non%20bill.jpg
[8] http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2012/10-2/Foreign%20Demand%20TSY%203%20PDs.jpg