Fed Holds Over Half of All Bonds Due in 10 to 15 Years, Straining Debt Backdrop

A note from Peter Tchir of Academy Securities, circulated via ZeroHedge, said the Federal Reserve owns over 50% of all Treasury bonds maturing between 10 and 15 years from now. The disclosure lands alongside separate reporting that the U.S. national debt officially surpassed $40 trillion in August. The two data points together point to a Treasury market where the central bank's own balance sheet plays an outsized role in a specific slice of the yield curve, even as the government's total obligations keep climbing. Historically, large jumps in national debt have preceded periods of elevated volatility in equities, though the relationship is not mechanical. What is unresolved is how the Fed intends to manage this concentration as it continues any balance-sheet runoff, and whether continued growth in the debt load changes the calculus. Fed's Kashkari separately said rising Treasury yields are not a concern, a view that will be tested against how the market absorbs future issuance.