The Fed’s own MBS was flat, growing just $0.388 billion and the foreign central banks sold agencies, but not much more than that amount. However, the cenbanks’ appetite for treasuries resumed its familiar $1B / day pace, in a trend that is continuing to look just a little non-random.
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 swung to $6.838 billion growth.
Agencies slipped down $0.579 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 growth rebounded to a nearly robust $6.259 billion.
Twist’s ratio graphs resumed the trend and suffered a small drop.
The Setser agencies number was flat, but the treasuries number popped up.
Notes and References
: “Foreign central banks’ U.S. debt holdings rise: Fed”, by Daniel Bases, Reuters, September 6, 2012.