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For bond investors worried about what might happen when the Federal Reserve starts whittling down its $2.46 trillion of Treasuries, there's good news.Even if the Fed doesn't buy any bonds to replace the $216 billion in Treasuries coming due next year, yields would hardly budge, according to JPMorgan Chase & Co., which looked at how much they moved during the Fed's debt-purchase program.In the past five years, the central bank spent almost $200 billion on reinvestments in Treasuries alone.Apart from Treasuries, the central bank has also amassed $1.73 trillion of mortgage-backed securities and now holds a total of $4.2 trillion of bonds.Since the Fed dropped rates to rock-bottom levels in 2008 and embarked on QE, yields on the U.S. 10-year note have fallen from 4 percent to about 2.15 percent Monday.If the Fed allowed all of its Treasuries that mature in 2016 to run off its balance sheet, 10-year yields would rise by about 0.05 percentage point.Using that math, the Fed's $1.3 trillion of Treasury holdings that come due through the end of the decade may boost 10-year yields by less than 0.3 percentage point.
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