After remaining unchanged for three weeks The Fed’s own holdings of MBS shrank a significant $12.788 billion. Meanwhile cenbanks’ holdings of treasuries also grew at an exuberant, but not extreme rate and agencies continued their sell-off, this week at a modest clip.
This week’s Reuters report1 was, as usual, based on the weekly update from the NY Fed’s H.4.1 table site.2 Here is Doom’s updated CSV version3 of the agencies and treasuries foreign central bank holdings data set.
The yellow line continues its climb, just not quite straight up this week.
Treasury Debt holdings grew by $18.166 billion, a big move but not quite two-thirds of last week’s “Top 10” performance.
Agencies shrank $2.147 billion, a small fraction of last week’s “Top 10” dump.
*Agen-FM: The dotted line is the foreign central banks’ Agency Debt holdings reduced by the level of the Fed’s own MBS holdings. Since the FRBNY itself is a lightly audited peculiar amalgam of foreign & domestic, central and private bank I think it might be useful to consider the hypothesis that for a while starting in January 2009 the Fed’s MBS holdings were being quietly deemed to be “foreign.” That is, for the first half of ’09 the dotted line seems more sensible than the red one.
The net growth in US obligations held rose $16.019 billion, which is actually a couple of billion more than last week’s.