I apologize, I have indeed mixed up the Fed and the Treasury in my last post. To respond to your previous post: I (naively?) thought that the Treasury had som

I apologize, I have indeed mixed up the Fed and the Treasury in my last post. To respond to your previous post: I (naively?) thought that the Treasury had some Euro reserves lying around (like other central banks have USD reserves) and used those, not issuing new USD debt. I agree that issuing new USD debt just to avoid the need for Japan to sell its USD debt (treasuries) would not reduce the pressure on USD debt. Most probably it was mostly psychological market manipulation ('leaked' notes).