The imaginary fiat liquidity is starting to slosh around in the trim tanks quite smartly. After several weeks of latency the Fed’s own MBS number has surged $27.299 billion, with the foreign central banks’ stated holdings of treasuries also seeing a fairly massive rise, while they sold off a big hunk of agencies.
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 nearly doubled last week’s big buy, blasting up $20.881 billion.
Agencies accelerated to a big $6.978 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 headed north, adding $13.904.
Twist’s ratio graphs spiked down.
The Setser numbers diverged moderately, cushioned by similar but smaller numbers on the anniversary date.
Notes and References
: “Foreign central banks’ US debt holdings rise- Fed”, Reuters, October 18, 2012.