According to WSJ, while the Fed has been snapping long-term bonds off the market, the Treasury has been ramping up its issuance of long-term debt to take advantage of historically low long-term rates.
Since October 2008, the average maturity of outstanding marketable Treasurys has climbed by nearly 32%, reaching almost 64 months in May. That is its highest level in a decade.
Got that? The Wall Street Journal makes clear what is going on (Wenzel’s bold):
The Fed’s policies, meanwhile, are a boon to the Treasury. By pushing down the cost of borrowing, the Fed has helped the Treasury finance government debt for less.
You can read the balance of Wenzel’s piece at his Economic Policy Journal website.