U.S. Debt, interest rates, and the FED

[benjamen]

I always read the numbers thrown around by writers in this field, but I wanted to do a little digging of my own. Does anyone have any thoughts on the fact that the average interest rate on federal debt is still dropping and the fact that the % of federal debt held by the FED is also droppping?

Average U.S. federal debt interest rates are going lower: http://www.treasurydirect.gov/govt/rates/pd/avg/2013/2013_06.htm
http://www.treasurydirect.gov/govt/rates/pd/avg/2013/2013_05.htm
June 30, 2013: 2.438%
May 31, 2013: 2.468%
June 30, 2012: 2.651%
May 31, 2012: 2.717%

Actual debt ownership numbers as of March 2013:
http://www.fms.treas.gov/bulletin/b2013_2ofs.doc
Month Total Debt Debt held by FED %held by FED
2013 Mar 16,771.6 6,656.8 39.7%
2012 Dec 16,432.7 6,523.7 39.7%
Sept 16,066.2 6,446.8 40.1%
June 15,855.5 6,475.8 40.8%
Mar 15,582.3 6,397.2 41.1%
2011 Dec 15,222.8 6,439.6 42.3%
Sept 14,790.3 6,328.0 42.8%
June 14,343.1 6,220.4 43.4%
Mar 14,270.0 5,958.9 41.8%

 

[pmbug]

How much of the debt is held by Fed proxies?

Average interest rate will start rising if Tbill rates start rising.