You know you’re having a bad day when Google News and ZeroHedge are featuring the same image:
In fact, though the Fed’s own MBS was basically unchanged, up just $0.020 billion with the foreign central bank holdings flat, Ben has announced that FedMBS (the green line we’ve been following so long) is going to grow by about $10 billion every week for the foreseeable future. By the time they released H.4.1 that was the top story on Google News, never mind their business section, and even eclipsing the Arab Fall crisis. With $270 billion in the kitty to help Fannie & Freddie after the Mayan Apocalypse it’s a bit curious that agencies bondholders would need additional comfort, but two things at least are now certain: it’s party time at NAR headquarters, and Central Ben is going to be one hot item on HGTV 🙂
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. It’s kind of funny that the Reuters weather reporters can maintain their cool, as if they’re totally oblivious that agencies was the world’s top story when they released their weekly report.
The treasuries settled back to a $1.826 billion gain.
Agencies came to a nearly dead stop, subtracting just $0.050 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 edged up a lucky $1.777 billion. Now that Ben has promised a moon shot with the green line we could see anything with the others.
Twist’s ratio graphs continued down slightly.
The Setser numbers diverged sharply on drama at the anniversary.
Notes and References
: “Foreign central banks’ US debt holdings rise – Fed”, , September 13, 2012.