Federal Reserve adds $22 billion in Treasuries to its Balance sheet this week

In keeping with its theme: "One can never own enough US Treasury Debt", the Federal Reserve, the largest holder of US Treasury debt on the planet, added another $22 billion worth of Treasuries this past week, courtesy of the QE2 program.

While they were doing that, they continue to sell those Mortgage Backed Securities that they purchased under the QE1 program. They have sold nearly $170 billion worth of MBS's in the last 8 months. Apparently the proceeds are going to secure more Treasuries.

Since the beginning of December last year, the Fed has added an average of $25 billion worth of Treasuries to its balance sheet each week. At that rate, they will have added another $350 billion in Treasuries by the first week of June. That would bring the total Treasury holdings in their balance sheet to $1.55 trillion putting them very much on target to exceed the combined Treasury holdings of both China and Japan.