Banks Buying Treasuries at Seven Times 2011 Pace as Deposits Beat Lending

Discussion in 'Wall St. News' started by THE-BEAKER, Mar 12, 2012.

  1. http://www.bloomberg.com/news/2012-...times-2011-pace-as-deposits-beat-lending.html


    U.S. banks bought more government and related debt in the first two months of 2012 than they did in all of last year, an endorsement of Federal Reserve Chairman Ben S. Bernanke’s assessment of the economy that’s boosting demand for bonds even with yields near the lowest on record.

    Commercial lenders purchased $78.2 billion of Treasuries and securities of agencies in January and February, compared with $62.6 billion in all of 2011, bringing their holdings to $1.78 trillion, Fed data show. Deposits exceeded loans by a record $1.63 trillion last month, up from $1.17 trillion in January 2011, providing scope to buy more bonds.