Only the treasury is buying the debt?....

Let's see:

the government is buying most of the bad mortgages and now buying the government bonds. Printing the money to do so, of course.

Then what?

We don't know! Defense spending is the only employer expanding. House building has collapsed. Oil prices going up. Only the government is hiring. Over 40 states teetering on bankruptcy. We are spending the Social Security funds faster than we collect.

This can't be good.

Something Very Strange Is Happening With Treasuries -- Seeking Alpha

One could potentially argue that this indirect buying came from the Fed covertly buying under the guise of an indirect bidder (the Treasury recently changed the definition of what qualifies for an indirect bidder to make it more vague). It IS rather odd that every single cent of competitive bidding coming from indirect buyers was filled. It’s almost as if the indirect buyers knew precisely WHAT yield to accept… OR were simply trying to take up the slack in what was already a VERY weak auction.