The Fed’s own holdings of MBS were unchanged again and cenbanks’ holdings of treasuries rose nicely, but agencies shrank a bit, resulting in a week that was satisfactory, but not outstanding.
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 velocity of the yellow line is only about two-thirds of last week’s, but it’s still rising fast.
Treasury Debt holdings grew by $13.571 billion, not as big as the last couple of week’s but very respectable.
Agencies shrank $4.683 billion, resuming the the recent trend down.
*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 $8.889 billion, which was not nearly the rate we’ve been seeing lately, but still a bit over a billion dollars a day.
Twist’s ratio graphs continued down a bit stronger this week.
The Setser treasuries component continues its surging rebound, but the agencies line clicked down this week.
Graph 52-week changes to go here when available (thanks for your patience everyone, the Castle’s massive computer inventory has had a tough week ).
Notes and References
: “Foreign central banks’ US debt holdings rise – Fed”, Reuters, November 12, 2010.