Why Belgium Makes Sense as the Mystery Buyer of Massive Amounts of U.S. T-Bonds
It perhaps makes sense now why Belgium has been buying massive amounts of U.S. Treasuries recently. If the European Central Bank is now going to charge interest to banks to hold money there, far better for European banks to hold their reserves in U.S. Treasuries that pay some interest.
We have long pondered how would the Fed keep interest rates low if it stopped buying 60-90% of the newly issued U.S. Treasuries. Clearly there was no apparent large buyer that could buy U.S. Treasuries in such amounts.