Mr. Trend pressed his foot gently on the accelerator this week, with most of the numbers quietly growing by roughly between 5 and 15 percent. The Fed’s own holdings of MBS shrank by a slightly more significant $14.714 billion. Meanwhile cenbanks’ holdings of treasuries grew at a rather more exuberant rate and agencies continued their sell-off, this week at a bit less 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 moonshot.
Treasury Debt holdings grew by $20.809 billion, yet another big move.
Agencies shrank $2.255 billion, just a bit more than last week.
*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 $18.554 billion, quite a rise from last week’s figure.