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The facility should deepen the pool of Treasuries, which are in strong demand during liquidity crises.
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Money-market funds themselves hold another $338 billion of Treasuries.
Those figures include both government and private holders of Treasuries.
And constraining the supply of Treasuries brings its own problems.
"There's been a lot of buying of Treasuries.
Munis typically yield 80to85percentent of Treasuries with comparable maturities, because munis are tax exempt and Treasuries are not.
So the Chinese government has said fairly little of late about its huge holdings of Treasuries.
Its second round of money printing financed purchases of $600 billion of Treasuries.
Almost all debt is priced off of Treasuries.
The superiority of Treasuries has been even more so since then.
A widening pool of talent.
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