The Fed’s own holdings of MBS were again unchanged and foreign central banks’ holdings of agencies rebounded into mild positive territory, but the treasuries number again blasted down, this time by the fifth largest amount in the data set after the record dump two weeks ago.
This week’s Reuters report1 is, 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
Treasuries again plunged, this time by $17.747 billion. Clearly the yellow line has established a top.
Agencies rose by $1.357 billion, recovering a bit less than a third of last week’s drop.
*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 was crushed, losing $16.390 billion.
Twist’s ratio graphs leaped up.
The yellow Setser number is going just about straight down, indicating a collapse in foreign official support for US sovereign paper compared to the previous year.
Notes and References
: “Foreign central banks’ US debt holdings fall – Fed”, Reuters, October 13, 2011.