Fed now owns almost 3 times as much in US Treasuries than China...when does the trade with the Fed start?

[c1ue]

http://www.federalreserve.gov/releas...41.htm#h41tab2

Millions of dollars

Memorandum item	Averages of daily figures			Wednesday Feb 9, 2011
	Week ended Feb 9, 2011	Change from week ended
		Feb 2, 2011	Feb 10, 2010
Marketable securities held in custody for foreign official and international accounts 1	3,363,102	+ 7,260	+ 406,969	3,367,576
U.S. Treasury securities	2,613,441	+ 7,188	+ 423,322	2,618,480
Federal agency securities 2	749,661	+ 72	- 16,353	749,096
Securities lent to dealers	18,668	+ 1,926	+ 14,191	21,693
Overnight facility 3	18,668	+ 1,926	+ 14,191	21,693
U.S. Treasury securities	17,430	+ 2,122	+ 13,670	20,457
Federal agency debt securities	1,238	- 196	+ 522	1,236

Note: Components may not sum to totals because of rounding.

Government (and GSE) securities on the Fed's balance sheet were $784 billion and $502 billion in 2007 and 2008, respectively.

http://pdfcast.org/download/the-fede...it-matters.pdf

[sunskyfan]

Re: Fed now owns almost 3 times as much in US Treasuries than China...when does the trade with the Fed start?

I hear they have some really "valuable" assets they have picked up a few years ago. Something to do with banks, finance, and real estate I believe.