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Even the modest retirement of Treasury debt during the past two years has made Treasurys scarce.
Treasury debt prices advanced yesterday.
Some hedge currencies; some include United States Treasury debt.
Treasury debt prices eased yesterday after Mr. Greenspan's comments.
But the days of ballooning Treasury debt are over.
More than half of Treasury debt is held abroad, principally by foreign central banks.
The trouble is that Treasury debt is a perfect instrument for the Fed.
Second, yields (market-determined interest rates) on United States Treasury debt are likely to decline.
To drain those reserves and offset that pressure, the Fed sells Treasury debt.
Interest rates on Treasury debt tend to go down in the face of potential fiscal mayhem.
It will buy the equivalent of most of the new Treasury debt issued through next June.
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