The Fed’s own holdings of MBS shrank once more, this week by a substantial $15.150 billion, and foreign central banks just reversed last week’s counter-trend selloff, offsetting that shrinkage with just $0.273 billion to spare.
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.
Treasuries were up quite lustily this week, but that line has been sputtering a bit lately.
This week’s rebound in treasuries was $8.691 billion.
Agencies sagged just a bit, by $0.566 billion.
*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 of US obligations held grew $8.126 billion.
Twist’s ratio graphs slid down a bit, returning to trend.
The Setzer graph actually converges this week on the even bigger reversal on the anniversary date.
Notes and References
: “Foreign central banks’ US debt holdings rise – Fed”, by Nick Olivari, Reuters, December 2, 2010.