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Sina Financial News TD Securities interest rate strategists said in a note that the purchase of U.S. bonds by large domestic banks has surged in the past three weeks, which seems to be related to Fed officials’ support for the central bank to slow down the pace of stripping U.S. bonds from its balance sheet. Fed data showed banks had increased their holdings of U.S. Treasuries by $123 billion over the past three weeks, analysts at the bank said. "We believe the timing of the surge in purchases coincides with the timing of Fed Governors Waller and Logan’s speeches on phasing out balance sheet reduction. Fed Chair Jerome Powell also stressed in his recent press conference that an exit from balance sheet reduction may begin soon, they wrote. "We think this may encourage investors to buy Treasuries in anticipation that the balance sheet reduction will end sooner or later. They said bank purchases of U.S. Treasuries this year have pushed swap spreads wider and have room to continue to widen.