Correct me if I am wrong, but when a bond matures, does that not get paid back to the bond holder for the full amount? So if you have a trillion dollars in bonds maturing, then those who originally subscribed for those bonds will get their money back plus the final interest payment. What are these funds and insurance companies going to do with all that money they just got from those maturing bonds? I would suspect they do what they always do, and roll them back into a new issue. Therefore, it will probably not be the big air pocket that some people assume, except to find the money to pay all that recurring interest premium and the debt issuance costs.

Unless there is some other viable place to park cash and get long term yield, the bond market should still have some buying power even considering the low interest and high risk that goes with the current situation. For sure some money will leave the system, just look at China for example where the appetite to keep buying bonds is waning and they are now actively investing directly into commodity assets. But that will be offset by the money printing as well. I just dont think the entire bond maturity will have to be furnished by newly printed money. JMHO...

cheers!

mike