It borrows the difference from anyone who will loan it to them

This is chiefly done by selling bonds (aka treasury notes)

Right now, the biggest foreign holder is Japan

In the past, the Federal Reserve has stepped in to buy them when others have failed to buy up all that is offered

The total treasuries held by Fed range from sub 1 trillion in 2004, to peak of 5.7 trillion in june 2022 - been going down ever since (chart goes to 14MAY2025)
https://fred.stlouisfed.org/series/TREAST

(The auction Gregory is talking about is likely roll-overs, with no impact (up or down) on total held treasury assets, so it looks like his claim the Fed started buying again is in error)

1) These auctions are held regularly.

2) The previous auction got an interest rate of 4.225 %.

3) This auction got an interest rate of 4.22 %.

Everything seems to indicate that there was nothing unusual about this auction. The rate changed much less than say the 5 year has changed in the last week: 4.178 % to 4.023 %.

On what are you basing your alarmist conclusion?

I'm just curious. It looks like you are referencing the 4 week paper that was sold yesterday. Am I right?

https://www.treasurydirect.gov/auctions/announcements-data-results/

I took a harder look at this "report," and concluded it was misleading at best, and exploitive and manipulative at worst.

The recent auction activities of the FED have to attributed to roll-overs, as per their official position on such actions:
https://www.newyorkfed.org/markets/opolicy/operating_policy_250319

This is what I love about DU, so many keen and patient minds here, sharing and helping each other

The Fed has all but stopped the shrinking of their balance sheet.

Don’t worry. Massive QE is not far off on the long end to institute yield curve control.

I really think you should choose a real site.

Especially since you are about to post your post # 5,000 next post.

... for pointing out my approaching milestone post

I would have totally missed that if not for your kind comment

Cheers

From a dizzying $3450 about a month ago to under $3200 today (close to nudging $3200 again). That is a huge drop (what goes up, ‘tis said) in such a short time.

If it were all so simple…..

Has done it in the past. With it dropping now, I expect the recession will become a lot more obvious as it picks up steam.

Next month, Switzerland will again arrive at ZIRP and I expect another ECB cut soon. With the upward trend of the Euro against the dollar, they can cut further like the SNB.