Foreign central banks were net buyers of agency debt for the first time in nine weeks [1] [2] as they added a healthy $3.557 billion to their holdings. Meanwhile they bought a whopping $9.951 billion of treasuries. This news comes from FRBNY’s weekly statistical release H.4.1 [3] and Doom has again added the last week’s data to our CSV file going back to early 2000.[4] Since the treasuries purchase was so strong, the agencies / treasuries ratio continued to decline slightly. And therefore the trend reversal in the graph going back to 2000 is a bit more pronounced.
