Treasuries – who will fill the void left by the Fed?

The Federal Reserve’s second round of quantitative easing (QE2) ends next month. Last November, the FOMC announced that the Fed would purchase an extra $600bn in US government bonds by th middle of this year in addition to reinvesting principal payments from agency debt and agency mortgage-backed securities into longer-term Treasuries. Who will fill the Fed’s shoes once it is gone?

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