The Fed’s own holdings of MBS were unchanged this week and foreign central banks holdings of both treasuries and agencies shrank modestly, continuing a trend of stagnation.
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 treasuries trend continues to sputter, much like it did around the end of last year.
The Treasury Debt number turned around to a contraction of $2.872 billion.
Agencies’ shrinkage nearly matched that of treasuries, reducing by $2.810 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 retreated by 5.683 billion. The combined number has now risen less than $5 billion since November 10th.
Twist’s ratio graphs were flat this week.
The Setzer graph numbers both retreated a bit; the anniversary date recorded small gains in both components.
Notes and References
: “Foreign central banks’ US debt holdings fall – Fed”, by Steven C. Johnson, Reuters, December 9, 2010.