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A comment on Since mid-April, the Fed has withdrawn ~$140B of liquidity from financial system. Parent comment

Re:Since mid-April, the Fed has withdrawn ~$140B of liquidit... by gz5 on Wednesday September 21, 2022 @03:27PM (#32930233)
The 140B you cite is mainly the Fed buying bonds from Treasury (indirectly)? Other than the other large buyers/sellers (e.g. other countries), what else materially creates up or down pressure on the rates (I know they are headed back up but they are still on the low side, historically)?

Added (indirectly) to reflect comments below - tks.

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Re:Since mid-April, the Fed has withdrawn ~$140B of liquidit... by JumpCrisscross on Wednesday September 21, 2022 @03:28PM (#32930273)
> 140B you cite is mainly the Fed buying bonds from Treasury?

The Fed isn't allowed to buy bonds from the Treasury [1]. The $140bn refers to bonds the Fed is letting mature without reinvesting the proceeds. That leads to fewer dollars chasing Treasuries, which reduces their price, which raises rates.

[1] https://www.federalreserve.gov/faqs/money_12851.htm

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Re:Since mid-April, the Fed has withdrawn ~$140B of liquidit... by nairboon on Wednesday September 21, 2022 @03:53PM (#32930630)
The Treasury auctions the bonds off to the primary dealers.

The primary dealers sell the bonds to the Fed.

At the end, the Fed has bought boatloads of Treasury bonds, but not from the Treasury!

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Re:Since mid-April, the Fed has withdrawn ~$140B of liquidit... by egberts1 on Wednesday September 21, 2022 @04:08PM (#32930824)
The Fed isn't allowed to buy bonds from the Treasury [1] … directly.

You forgot the word “directly”.

Feds can buy back in “open-market”.

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