Thursday saw Bank of America Research.......>

US TSYS: Thursday saw Bank of America Research note that "as the Treasury market

has grown exponentially in the last decade, from $4.5tn in 2007 to over $18tn

today, the largest growth in Treasury holdings, according to the Fed's flow of

funds data, is surprisingly not the Federal Reserve or foreign central banks,

but mutual funds. It is striking to see that the growth in domestic fund

holdings is a multiple of the Fed's growth, although domestic fund holdings are

$1.2tn versus the Fed's non-Tbill holdings near $3.7tn. In addition, foreign

holdings, which include central banks and private investors, have slowed down.

This development represents a significant change in Treasury market flows, which

for years had been dominated by the growth of foreign central bank balance

sheets, including China, Japan, Brazil and emerging economies."