After a day of Whale Watching it’s simply awesome how the powers that be always seem to circle the wagons and keep the status quo together (how’s that for cliches? 😉 ). Anyway, the Fed’s own holdings of MBS remained stalled, rising but by just $0.006 billion while foreign central bank holdings of US obligations swung to a $1B / day drain.
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 data set.
The treasuries number shrank $6.445 billion, giving back roughly 2/3rds of last week’s growth.
Agencies deflated yet again but by a mere $0.514 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 shrank by $6.959 billion, reversing the bulk of last week’s growth.
Twist’s ratio graphs swung to a modest gain.
The Setser numbers suffered modest convergence.
Notes and References
: “Foreign central banks’ US debt holdings fall – Fed”, Reuters, May 10, 2012.