Why is the Fed quietly buying billions in bonds — and hoping nobody notices?

Yahoo ^ | 19 May 19 | Charlie Garcia

[delta7]

The U.S. Federal Reserve just pulled off something stealthy — over four days last week, without fanfare, the Fed vacuumed up $43.6 billion in U.S. Treasurys. That’s $8.8 billion in long-dated 30-year bonds on May 8 alone, plus another $34.8 billion earlier in the week. Not exactly small change….

… Commodity traders, in particular, have a nose for monetary sleight-of-hand. Gold GC00, the ultimate financial cynic’s metal, has risen sharply since early 2024. Gold doesn’t believe in politicians, central bankers or economists — even the Ivy League types who wave their hands and promise stability. It believes numbers.

But this isn’t just a U.S. game. China has jumped into the gold pit too, and brings a bigger shovel. China’s central bank just cranked open the vault doors by dramatically raising gold-import quotas, letting local banks swap U.S. dollars DX00 directly for bullion.…

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TOPICS: Business/Economy; Crime/Corruption; Government
KEYWORDS: agitprop; bonds; brics; goldbugs; ntsa; tryasearch

[delta7]

Frankly, I expected better from Bessett. Those watching saw this occur throughout senile Joes term….when the Fed has to start buying our unsold debt instruments, “ the Snake is eating its tail”….

In any case, good to see our corrupted MSM finally taking notice….we are in a debt spiral, much opportunity to those who are thinkers.

[thinden]

when the Fed has to start buying our unsold debt instruments, “ the Snake is eating its tail”….

xxxxxxxxxxxxxx

no body else is buying

[Dr. Franklin]

I’m guessing that Trump expects to drive down interest rates, so treasury is buying up higher interest 30 year bonds and will reissue them when rates go down. Is treasury selling more short-term bonds now? More information is needed.

[delta7]

no body else is buying
——————

What happens when we can no longer get sovereign nations to buy our debt notes (which is now occurring)….

https://www.ncesc.com/geographic-faq/what-happens-if-no-one-buys-us-debt/

There is still time to prepare and prosper. We are just entering another economic cycle. The old saying, “ you can’t get out of the way of the truck if you can’t see it”…..

[citizen]

DOGE was supposed to save/reclaim huge sums - but is finding itself stymied at every turn by the tag team of deep state infrastructure and activist judges.

The $5 million golden fast-track citizen tickets were supposed to tally as much as $5 trillion - haven’t heard much from that program lately.

Then there’s Congress now having great difficulty...
1) codifying the DOGE findings into permanent future savings
2) agreeing on much of anything in the way of spending reductions
3) apparently set to raise the faux debt limit by $4 trillion

And now, the worrisome gov’t practice of buying bonds from itself continues.

It’s Trump against the world, a tough fight even for him.

[Alas Babylon!]

The claim that the Federal Reserve recently purchased $43.6 billion in U.S. Treasurys, including $8.8 billion in 30-year Treasurys in a single day, appears to stem from posts on X in early May 2025.

However, there is no official confirmation from the Federal Reserve or reputable financial sources in the provided web results or elsewhere to verify this specific transaction.

The lack of corroborating evidence from primary sources, such as the Federal Reserve Bank of New York’s operational reports or the H.4.1 statistical release, suggests that this claim may be speculative or unverified.

X posts alone are not sufficient to confirm such events, as they can contain unverified or misleading information.

[citizen]

I left out the Moody bond rating reduction from AAA to AA1.

[Racketeer]

Of course the MSM will take notice during a GOP administration.

[Tell It Right]

Already posted at https://freerepublic.com/focus/f-news/4317842/posts

No worries. Sometimes I don't find the earlier posts.

[Leaning Right]

I’m a bit confused by this too. If rates are expected to go down, it would seem to make sense for the Treasury to be buying up its longer-term, higher-yield bonds now.

But I’m sure I’m missing a big piece of the puzzle. Lots of complicated stuff is probably going on behind the curtain.

More info is needed, as you noted.