It actually does make a difference. The US debt market is about $8.5T at the end of 06. You don’t need to do much buying at the margin during treasury auctions to influence the price. This was especially true over the last 5 years or so, when Japan and China where buying up as many bonds as the government could issue. That trend is now beginning to reverse, which will make it harder to keep a cap on interest rates (though they will try).
And buying $300 billion in the last 6 years cuts rates from 15% to 5%? LOL!
This was especially true over the last 5 years or so, when Japan and China where buying up as many bonds as the government could issue.
Rates are lower because Japan and China are buying? That makes more sense than claiming the Fed manipulated rates to 5%.
That trend is now beginning to reverse, which will make it harder to keep a cap on interest rates (though they will try).
I know, rates actually jumped to 5.25% a few weeks ago, They're back to 5.04%.