No mention of “dirty oil,” but an American questioned by CBC with reference to a proposed AB to TX pipeline expressed her preference for “domestic supply,” which was a bit unnerving.
The amero gap blew out to -278 basis points by yesterday’s close. Doom will be keeping a close watch as it approaches the limits of its recent +/-300bp range.
The Fed’s own holdings of MBS dropped a largish $9.269 billion while foreign central bank buying of US obligations were flat for a second straight week.
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.
Treasury Debt holdings have now advanced to $16.448 billion above their 11/17 ’10 level. That’s now two robust weeks followed by two flat ones. Might the recent resurgence be losing its mojo?
Treasury Debt grew, but only by $1.175 billion. That only reversed a bit more than a third of last week’s drop.
Agencies lost a small $0.326 billion, giving back about half of last weeks modest gain.
*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 advanced, but by only $0.850 billion. This number has now risen by $47.393 billion in the fifteen weeks since last November 17th, and nearly two-thirds of the increase was in agencies.
Twist’s ratio graphs were flat.
The Setzer treasuries numbers retreated slightly again this week
Notes and References
: “Foreign central banks’ U.S. debt holdings rise: Fed”, by Nick Olivari, Reuters, March 3, 2011.