The Fed’s own holdings of MBS dropped once again, but this week by a mere $0.445 and foreign central banks holdings rose, especially the Treasury Debt number.
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 number had been pretty flat over the last month or so, but perked right up this week.
The Treasury Debt number grew by a robust $13.083 billion
At $4.174 billion agencies’ growth came within about $1 billion of reversing the shrinkage that occurred over the last two weeks.
*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 by a very healthy $17.257 billion.
Twist’s ratio graphs were rather flat this week.
The Setzer graph numbers diverged strongly this week.
Notes and References
: “Foreign central banks’ US debt holdings rise – Fed”, by Steven C. Johnson, Reuters December 23, 2010.