Obama can call himself The President, but it’s Dudley who is President in Chief. And even he is merely the tip of the who’s-in-charge iceberg. So let’s once again sit back and enjoy what is actually a weekly report on the health of the international tribute system. Just don’t hold your breath waiting for transparency, a breakdown by country or an independent audit.
The Fed’s own MBS holdings swelled by $6.412 billion in the first week after the announcement that they would be adding about $40B / month to the total for the unforeseeable future. The foreign central banks dumped about half that amount of agencies, but swarmed into treasuries big time.
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.
Treasuries blasted up $19.741 billion
Agencies swung to a $3.222 billion loss.
*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 surged up $16.518 billion.
Twist’s ratio graphs slammed downwards.
The Setser numbers again diverged sharply.
Notes and References
: “Foreign central banks’ US debt holdings rise – Fed”, Reuters, September 20, 2012.