Word on the street: TARP money used to buy US Treasuries

Voltron says: Rumor has it that much of the $700 Billion TARP bailout money was used to buy Treasuries (which is a typical form of collateral) which would explain how the new Treasury debt was absorbed so easily by the market. It's going to be a mess when all those treasuries eventually get sold while the Treasury Dept is simultaneously issuing more debt.